Fill in the blank: If the net profits made during the year are Rs 50,000 and the bills receivableshave decreased by Rs 10,000 during the year then the cash flow fromoperating activities will be equal to Rs ________________ (40,000/Rs 60,000).

Fill in the blank: If the net profits made during the year are Rs 50,000 and the bills receivableshave decreased by Rs 10,000 during the year then the cash flow fromoperating activities will be equal to Rs ________________ (40,000/Rs 60,000).

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Fill in the blank:

If the net profits made during the year are Rs 50,000 and the bills receivables
have decreased by Rs 10,000 during the year then the cash flow from
operating activities will be equal to Rs ________________ (40,000/Rs 60,000).

Definition Definition Net amount of cash that an entity receives and expends over the course of a given period. For a business to continue operating, positive cash flows are required, and they are also necessary to produce value for investors. Investors in particular prefer to see growing cash flows even after capital expenditures have been paid for (which is known as free cash flow).

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