Anand Ltd., Arrived At A Net Income of Rs 5,00,000 for the Year Ended March 31, 2017-Bzzii

Anand Ltd., arrived at a net income of Rs 5,00,000 for the year ended March 31, 2017. Depreciation for the year was Rs 2,00,000. There was a profit of Rs 50,000 on assets sold which was transferred to Statement of Profit and Loss account. Trade Receivables increased during the year Rs 40,000 and Trade Payables also increased by Rs 60,000. Compute the cash flow from operating activities by the indirect approach.

Cash Flow from Operating Activities as on March 31, 2017

Particulars	Amount (Rs.)	Amount (Rs.)
Net Profit during the year		5,00,000
Items to be adjusted:
Add: Depreciation	2,00,000
Less: Gain on sale of assets	(50,000)	1,50,000
Operating Profit before Working Capital changes		6,50,000
Add: Increase in Trade Payables	60,000
Less: Increase in Trade Receivables	(40,000)	20,000
Net Cash from Operations		6,70,000

Chapter-6 Cash Flow Statement

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