5. Compute cash from operations from the following figures:
(i) Profit for the year 2016-17 is a sum of Rs. 10,000 after providing for depreciation of Rs. 2,000.
(ii) The current assets and current liabilities of the business for the year ended March 31, 2016 and 2015 are as follows:
| Particular | March 31, 2016 (Rs) | March 31, 2017 (Rs) |
| Trade Receivables | 14,000 | 15,000 |
| Provision for Doubtful Debts | 1,000 | 1,200 |
| Trade Payables | 13,000 | 15,000 |
| Inventories | 5,000 | 8,000 |
| Other Current Assets | 10,000 | 12,000 |
| Expenses payable | 1,000 | 1,500 |
| Prepaid Expenses | 2,000 | 1,000 |
| Accrued Income | 3,000 | 4,000 |
| Income received in advance | 2,000 | 1,000 |
Cash Flow Statement
for the Year Ending March 31, 2017
| Particulars | Amount (Rs.) | Amount (Rs.) |
| Cash from Operating Activities | ||
| Net Profit | 10,000 | |
| Items to be added: | ||
| Depreciation | 2,000 | 2,000 |
| Operating Profit before Working Capital Adjustments | 12,000 | |
| Less: Increase in Current Assets | ||
| Trade Receivables | (1,000) | |
| Accrued Income | (1,000) | |
| Accrued Income | (2,000) | |
| Other Current Assets | (3,000) | |
| Inventories | ||
| Add: Increase in Current Liabilities | ||
| Provision for Doubtful Debts | 200 | |
| Trade Payables | 2,000 | |
| Expense Payable | 500 | |
| Add: Decrease in Current Assets | ||
| Prepaid Expenses | (1,000) | |
| Less: Decrease in Current Liabilities | ||
| Income received in advance | 1,000 | |
| Net Cash From Operating Activities | 7,700 |