‘Shri Ltd.’ was carrying on a business of packaging in Delhi and earned good profits in the past years. The company wanted to expand its business and required additional funds. To meet its requirements the company issued equity shares of Rs. 30,00,000. It purchased a computerised machine of Rs. 20,00.000. It also purchased raw material amounting to Rs. 2,00,000. During the current year, the Net Profit of the company was Rs. 15,00,000. Find out ‘Cash Flow from Operating Activities’ from the above transactions.

SOLUTION

Cash Flow from Operating Activities = Net, Profit of the Company Rs. 15.00,000.
Note: Purchase of Raw Material Rs. 2,00,000 must have been considered while computing net profit.


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