Cash Flow Questions

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

$C$ Ltd made a profit of $\text{Rs. }10,000$ after charging depreciation of $\text{Rs. }2,000$ on Assets, transfer to General Reserve $\text{Rs. }3,000$, Written off Goodwill $\text{Rs. }700$, Profit on sale of Asset $\text{Rs. }300$, increase in Debtors $\text{Rs. }300$, increase in creditors $\text{Rs. }600$, increase in prepaid expenses $\text{Rs. }20$ and decrease in outstanding expenses $\text{Rs. }200$. What will be the cash from operating activities?

Find out cash from Financing Activities from the following information:ItemAmountIssue of Equity Shares$\text{Rs. }80,000$ Redemption of Preference Shares$\text{Rs. }30,000$ Interim Dividend Paid$\text{Rs. }25,000$ Interest on Debentures$\text{Rs. }15,000$ Issue of Debentures$\text{Rs. }30,000$ Choose the correct answer from the options given below:

A part of fixed Assets costing $\text{Rs. }2,00,000$ (Book value $\text{Rs. }1,50,000$) was sold at a gain of $\text{Rs. }10,000$. How will this transaction affect the cash flow statement?

Separate disclosure of cash flows arising from Financing Activities is important because:

W Ltd has given you following information:ItemAmountMachinery (Opening Balance)$\text{Rs. }50,000$ Machinery (Closing Balance)$\text{Rs. }60,000$ Accumulated Depreciation (Opening Balance)$\text{Rs. }25,000$ Accumulated Depreciation (Closing Balance)$\text{Rs. }15,000$ During the year, a machine costing $\text{Rs. }25,000$ with accumulated depreciation of $\text{Rs. }15,000$ was sold for $\text{Rs. }13,000$. Calculate Net Cash Flow from Investing Activities.

Capital gains tax paid explicitly on the sale of fixed assets should be classified as a: