Debtors Creditors Bills Receivables Bill Payables Prepaid Expenses 24,000 20,000 20,000 30.000 30.000 17,000 12.000 16,000 400 600 Calculate Cash Flow from Operating Activities. Solution : Calculation of Net Profit before Tax and Extra-ordinary items: Net Profit (Given) Rs. 1,00,000 959 Add: Provision for Taxation Rs. 1,60,000 Transfer to general reserve Rs. 14,000 Net Profit before Tax and Extra-ordinary item Rs. 2,74,000 2: From the following information calculate cash flow from investing activities: 31.03.2014 31.03.2015 Particulars Rs. Rs. 5,50,000 Machinery (at Cost) Accumulated Depreciation Patents Goodwill 5,00,000 1,00,000 2,00,000 1,50,000 1,20,000 1,20,000 1,00,000 5,00,000 Investment 2,50,000 Additional Information (i) During the year, a machine costing Rs. 50,000 with its accumulated depreciation of Rs. 25,000 was sold for Rs. 20,000. (ii) Patents were written off to the extent of Rs. 60,000 and some patents were sold at a profit of Rs. 10,000. (iii) 40% of the investments held in the beginning of the year were sold at 10% Profit. (iv) Interest received on investment Rs. 25,500. (v) Dividend received on investment Rs. 8,500. (vi) Rent received Rs. 5,000