Taking the data of Example 1, compute cash flow from operating activities using the indirect method.

Data from Example 1

Taking the data of Example 1, compute cash flow from operating activities using the indirect method. From the following information, prepare cash from operating activities using the direct method.

Particulars To Opening stock To Purchase of goods In cash On credit To Direct Expenses To Sales return To Gross Profit c/d To Depreciation To Preliminary Expenses written off To Goodwill written off To Salaries and Wages Paid 8,000 Add: Outstanding 1,000 To Rent paid 6,000 Less: Pre-paid 600 Profit and Loss Account For the year ended March 31, 2009 Amount (3) 60,000 30,000 1,50,000 4,000 14,000 1,16,000 3,74,000 32,000 5,000 12,000 9,000 5,400 Particulars By Sales of goods In cash On credit By Purchase return By Closing Stock By Gross Profit b/d By Investment Income By Profit on sale of Investment By Discount from Creditors Amount (*) 2,00,000 1,20,000 6,000 48,000 3,74,000 1,16,000 40,000 8,000 2,000