Find out the cash from operations by indirect method from the following information: Operating statement of ABC Ltd. for the year ended 31.3.20X2…
CA Final · Financial Reporting · MTP · September 2025
Find out the cash from operations by indirect method from the following information: Operating statement of ABC Ltd. for the year ended 31.3.20X2 Particulars ₹ Sales 5,00,000.00 Less: Cost of goods sold 3,50,000.00 Administration & Selling Overheads 55,000.00 Depreciation 7,000.00 Interest Paid 3,000.00 Loss on sale of asset 2,000.00 Profit before tax 83,000.00 Tax (30,000.00) Profit After tax 53,000.00 Balance Sheet as on 31st March 20 X2 20 X1 Assets Non-current Assets Property, Plant and Equipment 75,000.00 65,000.00 Investment 12,000.00 10,000.00 Current Assets Inventories 12,000.00 13,000.00 Trade receivables 10,000.00 7,000.00 Cash and cash equivalents 6,000.00 5,000.00 Total 1,15,000.00 1,00,000.00 Equity and Liabilities Shareholders' Funds 60,000.00 50,000.00 Non-current Liabilities 33,000.00 35,000.00 Current Liabilities Trade Payables 12,000.00 8,000.00 Payables for Expenses 10,000.00 7,000.00 Total 1,15,000.00 1,00,000.00
Suggested Answer and Working Notes:
Cash flow from Operations by Indirect Method Indirect Method ₹ Profit After Tax 53,000.00 Add back/(Less): Depreciation 7,000.00 Loss on sale of asset 2,000.00 Interest paid 3,000.00 Decrease in Inventory 1,000.00 Increase in Trade Receivables (3,000.00) Increase in Trade Payables 4,000.00 Increase in Payables for expenses 3,000.00 Net cash generated from operating activities 70,000.00
Topics: Ind AS 7
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