How do you treat depreciation in calculating cash flow from operating activities? Post category:Accountancy Reading time:1 mins read SOLUTION Depreciation is added back to net profit while calculating cash flows from operating activities. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostHow do you treat profit or loss on sale of fixed assets for calculating Cash flow from operating activities? Next PostWhy do we add back depreciation to net profit while calculating cash flows from operating activities? (C.B.S.E. 2016, C) You Might Also Like Nishant Co. Ltd. has authorised share capital of Rs. 1,00,00,000 divided into 1,00,000 Equity Shares of Rs. 100 each. It has existing issued and paid up capital of Rs. 25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under: July 9, 2022 Calculate Operating Profit Ratio, in each of the following alternative cases: Case 1: Revenue from Operations (Net Sales) Rs. 10,00,000; Operating Profit Rs. 1,50,000. Case 2: Revenue from Operations (Net Sales) Rs. 6,00,000; Operating Cost Rs. 5,10,000. Case 4: Revenue from Operations (Net Sales) Rs. 3,60,000; Gross Profit 20% on Sales; Operating Expenses Rs. 18,000. Case 4: Revenue from Operations (Net Sales) Rs. 4,50,000; Cost of Revenue from Operations Rs. 3,60,000; Operating Expenses Rs. 22,500. Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations Rs. 8,00,000; Gross Profit 20% on Sales; Operating Expenses Rs. 50,000. August 17, 2022 Calculate Return on Investment (ROI) from the following details: Net Profit after Tax Rs. 6,50,000; Rate of Income Tax 50%; 10% Debentures of Rs. 100 each Rs. 10,00,000; Fixed Assets at cost Rs. 22,50,000; Accumulated Depreciation on Fixed Assets up to date Rs. 2,50,000; Current Assets Rs. 12,00,000; Current Liabilities Rs. 4,00,000. August 17, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Nishant Co. Ltd. has authorised share capital of Rs. 1,00,00,000 divided into 1,00,000 Equity Shares of Rs. 100 each. It has existing issued and paid up capital of Rs. 25,00,000. It further issued to public 25,000 Equity Shares at a premium of 20% for subscription payable as under: July 9, 2022
Calculate Operating Profit Ratio, in each of the following alternative cases: Case 1: Revenue from Operations (Net Sales) Rs. 10,00,000; Operating Profit Rs. 1,50,000. Case 2: Revenue from Operations (Net Sales) Rs. 6,00,000; Operating Cost Rs. 5,10,000. Case 4: Revenue from Operations (Net Sales) Rs. 3,60,000; Gross Profit 20% on Sales; Operating Expenses Rs. 18,000. Case 4: Revenue from Operations (Net Sales) Rs. 4,50,000; Cost of Revenue from Operations Rs. 3,60,000; Operating Expenses Rs. 22,500. Case 5: Cost of Goods Sold, i.e., Cost of Revenue from Operations Rs. 8,00,000; Gross Profit 20% on Sales; Operating Expenses Rs. 50,000. August 17, 2022
Calculate Return on Investment (ROI) from the following details: Net Profit after Tax Rs. 6,50,000; Rate of Income Tax 50%; 10% Debentures of Rs. 100 each Rs. 10,00,000; Fixed Assets at cost Rs. 22,50,000; Accumulated Depreciation on Fixed Assets up to date Rs. 2,50,000; Current Assets Rs. 12,00,000; Current Liabilities Rs. 4,00,000. August 17, 2022