CBSE 2025, Set 2

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 | 1,20,000 | 1,00,000 |
| Provision for Tax | 30,000 | 25,000 |
| Trade Receivables | 65,000 | 50,000 |
| Trade Payables | 40,000 | 50,000 |
| Inventories | 60,000 | 80,000 |
| Income Tax paid during the year | 25,000 | |
| Depreciation charged on Plant & Machinery | 20,000 | |

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 (1,20,000 - 1,00,000) | 20,000 | | Add: Provision for Tax | 30,000 | | **Net Profit before Tax** | **50,000** | | Adjustments for non-cash and non-operating items: | | | Add: Depreciation on Plant & Machinery | 20,000 | | **Operating Profit before Working Capital Changes** | **70,000** | | Add: Decrease in Current Assets (Inventories) | 20,000 | | Less: Increase in Current Assets (Trade Receivables) | (15,000) | | Less: Decrease in Current Liabilities (Trade Payables) | (10,000) | | **Cash generated from Operations** | **65,000** | | Less: Income Tax Paid | (25,000) | | **Net Cash from Operating Activities** | **40,000** |

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Particulars	31-3-2024 (₹)	31-3-2023 (₹)
Surplus, i.e. Balance in Statement of Profit & Loss	1,20,000	1,00,000
Provision for Tax	30,000	25,000
Trade Receivables	65,000	50,000
Trade Payables	40,000	50,000
Inventories	60,000	80,000
Income Tax paid during the year	25,000
Depreciation charged on Plant & Machinery	20,000