Financial Statements

Cash Flow

Medium

Arrange the following in the context of Cash Flow Statement

A. Calculation of cash flow from Operating Activities

B. Calculation of cash flow from Financing Activities

C. Calculations of net increase/decrease in cash and cash equivalent during the year

D. Calculation of cash flow from Investing Activities

E. Calculation of net profit before tax and extraordinary item

Choose the correct answer from the options given below:

D, A, B, E, C

C, D, B, A, E

A, E, B, D, C

E, A, D, B, C

✅ Correct Option: 4

Preparing a Cash Flow Statement begins with computing Net Profit before tax and extraordinary items (E), then cash flow from Operating Activities (A), followed by Investing Activities (D), then Financing Activities (B), and finally the net increase or decrease in cash and cash equivalents (C).

2023: 29 May Shift 2

Which of the following will be added to operating profit before working capital changes, while preparing Cash Flow statement from indirect method?

2023: 11 June Shift 3

Cave Ltd. made a profit of Rs. 1,50,000 after charging depreciation of Rs. 30,000 on assets and a transfer to general reserve of Rs. 30,000. The Goodwill amortised was Rs. 9,000 and gain on sale of machinery was Rs. 5,000. Operating profit before working capital changes will be :

2026: 21 May Shift 2

KRISHNA Ltd. has given you the following information:

Particulars	Rs.
Machinery as on April 01, 2024	1,50,000
Machinery as on March 31, 2025	1,60,000
Accumulated Depreciation on April 01, 2024	1,25,000
Accumulated Depreciation on March 31, 2025	1,15,000

During the year, a machine costing Rs. 75,000 with Accumulated Depreciation of Rs. 15,000 was sold for Rs. 50,000.

Calculate cash flow from Investing Activities on the basis of the above information

2023: 20 June Shift 2

Particulars	Amount (Rs.)
Inventory at the beginning	40,000
Credit Purchase	1,60,000
Inventory at the end	38,000
Trade payable at the beginning	14,000
Trade payable at the end	14,500

Cash paid for inventory is:

2026: 11 May Shift 1

As per AS-3, arrange the following items in top to down order of the cash flow statement format according to indirect method.

A. Increase in Current Assets

B. Depreciation of the fixed assets

C. Purchase of Machinery

D. Issue of equity shares by the company

Choose the correct answer from the options given below:

2025: 15 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Cash Outflows from financing activities	(I) Redemption of debentures
(B) Cash Inflows from operating activities	(II) Current Investment
(C) Cash and cash equivalents	(III) Cash from royalties, fees, commissions and other revenues
(D) Cash Inflows from investing activities	(IV) Cash receipt from disposal of fixed assets including intangibles

Choose the correct answer from the options given below:

Solution

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