From the following particulars calculate cash flows from Operating activities: Particulars ₹ Retained earning 17,000 Depreciation 4,000 Loss on Sale…

Calculation of Cash Flow from Operating Activities Particulars Amount ₹ Retained earnings 17,000 Add: Depreciation 4,000 Add: Loss on sale of Machinery 3,000 Add: Premium Payable on redeemable Preference Shares 2,000 Add: Dividend paid 8,000 Add: Interim dividend paid during the year 10,000 Add: provision for tax made during the current year 7,000 Less: Refund of tax (1,000) Less: Profit on Sale of Investment (10,000) Operating Profit before Working Capital Changes 40,000 Add: Decrease in Prepaid Expenses (2,000 - 1,000) 1,000 Less: Increase in Trade receivable (12,000 - 10,000) (2,000) Add: Increase in Trade Payable (15,000 - 7,000) 8,000 Less: Decrease in Outstanding Expenses (1,400 - 1,000) (400) Cash generated from (Net of refund) operation 46,600 Less: Income tax paid (4,000 – 1,000) (3,000) Net Cash flow operating activities 43,600