CBSE 2025, Set 3

Question

From the following information, calculate Cash flow from Operating Activities:

| Particulars | 31-3-2024 (₹) | 31-3-2023 (₹) |
|---|---|---|
| Surplus, i.e. Balance in Statement of Profit & Loss | 2,40,000 | 2,00,000 |
| Provision for Tax | 60,000 | 50,000 |
| Trade Receivables | 1,30,000 | 1,00,000 |
| Trade Payables | 80,000 | 1,00,000 |
| Inventories | 1,20,000 | 1,60,000 |
| Income Tax paid during the year | 50,000 | |
| Depreciation charged on Plant & Machinery | 40,000 | |

Edvaya · Accepted Answer

The correct answer is Subjective. **Calculation of Cash Flow from Operating Activities** | Particulars | Amount (₹) | |---|---| | Net Profit as per Statement of P&L (2,40,000 - 2,00,000) | 40,000 | | Add: Provision for Tax | 60,000 | | **Net Profit before Tax** | **1,00,000** | | Adjustments for non-cash and non-operating items: | | | Add: Depreciation on Plant & Machinery | 40,000 | | **Operating Profit before Working Capital Changes** | **1,40,000** | | Add: Decrease in Current Assets (Inventories) | 40,000 | | Less: Increase in Current Assets (Trade Receivables) | (30,000) | | Less: Decrease in Current Liabilities (Trade Payables) | (20,000) | | **Cash generated from Operations** | **1,30,000** | | Less: Income Tax Paid | (50,000) | | **Net Cash from Operating Activities** | **80,000** |

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Particulars	31-3-2024 (₹)	31-3-2023 (₹)
Surplus, i.e. Balance in Statement of Profit & Loss	2,40,000	2,00,000
Provision for Tax	60,000	50,000
Trade Receivables	1,30,000	1,00,000
Trade Payables	80,000	1,00,000
Inventories	1,20,000	1,60,000
Income Tax paid during the year	50,000
Depreciation charged on Plant & Machinery	40,000