B Com Exam  >  B Com Questions  >  From the following information calculate cash... Start Learning for Free
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?
Most Upvoted Answer
From the following information calculate cash flow from operating acti...
Calculation of Cash Flow from Operating Activities

Bills Receivable:
- Decrease in bills receivable: 10000 - 7500 = 2500

Debtor:
- Decrease in debtor: 62500 - 37500 = 25000

Stock:
- Increase in stock: 30000 - 25000 = 5000

Prepaid Expenses:
- Decrease in prepaid expenses: 10000 - 7500 = 2500

Accrued Income:
- Increase in accrued income: 7500 - 5000 = 2500

Creditors:
- Increase in creditors: 27500 - 25000 = 2500

Outstanding Expenses:
- Increase in outstanding expenses: 1500 - 1250 = 250

Bills Payable:
- Decrease in bills payable: 10000 - 7500 = 2500

Income Received in Advance:
- Increase in income received in advance: 1500 - 1250 = 250

Profit During the Year:
- Profit during the year: 150000

Total Cash Flow from Operating Activities:
- 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)
- Cash flow from operating activities = (2500 + 25000 + 5000 + 2500 + 2500 + 250 - 2500 + 250 + 150000)
- Cash flow from operating activities = 181,750

Explanation:

Cash flow from operating activities is calculated by adjusting the net income for non-cash items and changes in working capital. 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.

We have also been given the profit during the year, which is included in the calculation of cash flow from operating activities. 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.
Explore Courses for B Com exam

Similar B Com Doubts

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?
Question Description
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? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. 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 2024 Exam. Find 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?.
Solutions 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? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
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. Besides giving the explanation 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?, a detailed solution 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? has been provided alongside types 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? theory, EduRev gives you an ample number of questions to practice 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? tests, examples and also practice B Com tests.
Explore Courses for B Com exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev