Financial Statements

Cash Flow

Hard

C Ltd made a profit of Rs. 10,000 after charging depreciation of Rs. 2,000 on Assets, transfer to General Reserve Rs. 3,000, Written off Goodwill Rs. 700, Profit on sale of Asset Rs. 300, increase in Debtors Rs. 300, increase in creditors Rs. 600, increase in prepaid expenses Rs. 20 and decrease in outstanding expenses Rs. 200. What will be the cash from operating activities?

Rs. 15,500

Rs. 15,480

Rs. 15,000

Rs. 16,000

✅ Correct Option: 2

Net Profit $= 10{,}000$ . Add back non-cash and non-operating: Depreciation $2{,}000$ + General Reserve $3{,}000$ + Goodwill $700$ $-$ Profit on sale $300$ $= 15{,}400$ operating profit before working capital changes. Adjust working capital: $- 300$ (debtors) $+ 600$ (creditors) $- 20$ (prepaid) $- 200$ (outstanding) $= 15{,}480$ .

2023: 11 June Shift 3

Calculate cash flow from financing Activities of X Ltd. which is a financing company.

Issue of shares Rs. 1,00,000

Issue of Bonus shares Rs. 50,000

Dividend paid Rs. 10,000

Interest paid Rs. 5,000

2022: 20 July Shift 1

Calculate the amount of cash generated from operations from the following information :

Particulars	(Rs.)
Profit before change in working capital	2,00,000
Depreciation on plant and Machinery	20,000
Gain on sale of Building	10,000
Increase in trade Paybles	4,500
Increase in trade Receivables	3,500
Interest paid	2,225
Decrease in Inventories	3,750
Redemption of 10% Debentures	80,000

2026: 20 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Receipt from royalties, fees, commission and other revenue	(I) Investing Activity
(B) Receipt from Interest and dividends	(II) Operating Activity
(C) Proceeds from issue of preference or equity shares	(III) Cash and Cash equivalent
(D) Current Investment	(IV) Financing Activity

Choose the correct answer from the options given below:

2022: 15 July Shift 2

What is the Cash flow from investing activities?

2026: 13 May Shift 1

From the following information, calculate cash flow from financing activities:

	April 1, 2025	March 31,2026
Long-term Loans	Rs. 2,00,000	Rs. 2,50,000

During the year, the company repaid a loan of Rs. 1,00,000.

2026: 11 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A. Demand deposits with banks is	I.	Cash flow from operating activities
B. Cash receipts from royalties, fees, commissions and other revenues	II.	Cash flow from investing activities
C. Interest received in cash from loans and advances	III.	Cash flow from financing activities
D. Cash proceeds from issuing shares	IV.	Cash and cash equivalents

Choose the correct answer from the options given below:

Solution

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