
Here you can find the meaning of From the following information calculate cash flow from operating activities : Bills receivable 10000 7500 Debtor 62500 37500 Stock 25000 30000 Prepaid expenses 10000 7500 Accured income 5000 7500 Creditors 25000 27500 Outstanding expenses 1250 1500 Bills payable 10000 7500 Income received in advance 1250 1500 Profit during the year 150000? defined & explained in the simplest way possible.

Information about From the following information calculate cash flow from operating activities : Bills receivable 10000 7500 Debtor 62500 37500 Stock 25000 30000 Prepaid expenses 10000 7500 Accured income 5000 7500 Creditors 25000 27500 Outstanding expenses 1250 1500 Bills payable 10000 7500 Income received in advance 1250 1500 Profit during the year 150000? covers all topics & solutions for B Com 2023 Exam.įind important definitions, questions, meanings, examples, exercises and tests below for From the following information calculate cash flow from operating activities : Bills receivable 10000 7500 Debtor 62500 37500 Stock 25000 30000 Prepaid expenses 10000 7500 Accured income 5000 7500 Creditors 25000 27500 Outstanding expenses 1250 1500 Bills payable 10000 7500 Income received in advance 1250 1500 Profit during the year 150000?. The Question and answers have been prepared By taking into account the changes in various working capital items and adjusting for non-cash items, we have arrived at the total cash flow from operating activities of 181,750.įrom the following information calculate cash flow from operating activities : Bills receivable 10000 7500 Debtor 62500 37500 Stock 25000 30000 Prepaid expenses 10000 7500 Accured income 5000 7500 Creditors 25000 27500 Outstanding expenses 1250 1500 Bills payable 10000 7500 Income received in advance 1250 1500 Profit during the year 150000? for B Com 2023 is part of B Com preparation.

We have also been given the profit during the year, which is included in the calculation of cash flow from operating activities. In this case, we have calculated the cash flow from operating activities by using the information given about various working capital items such as bills receivable, debtors, stock, prepaid expenses, accrued income, creditors, outstanding expenses, bills payable and income received in advance. Cash flow from operating activities = 181,750Ĭash flow from operating activities is calculated by adjusting the net income for non-cash items and changes in working capital. Cash flow from operating activities = (Decrease in bills receivable + Decrease in debtor + Increase in stock + Decrease in prepaid expenses + Increase in accrued income + Increase in outstanding expenses + Decrease in bills payable + Increase in income received in advance + Profit during the year)

Total Cash Flow from Operating Activities: Increase in income received in advance: 1500 - 1250 = 250 Increase in outstanding expenses: 1500 - 1250 = 250

Calculation of Cash Flow from Operating Activities
