From Income Statement for the Year Ended December 31, 2023 (in Rs.). Determine Cash from operating activity. Revenue Expenses Sales Rs. 500,000 Cost of Goods Sold Rs. 200,000 Other Revenues Rs. 50,000 Operating Expenses Rs. 100,000 Interest Expense Rs. 10,000 Tax Expense Rs. 20,000 Net Income Rs. 220,000 Additional Information: I. Depreciation Expense: Rs. 30,000 II. Changes in Working Capital: Increase in Accounts Receivable: Rs. 10,000. Decrease in Inventory: (Rs. 5,000). Increase in Accounts Payable: Rs. 8,000. Increase in Accrued Expenses: Rs. 3000

From Income Statement for the Year Ended December 31, 2023 (in Rs.). Determine Cash from operating activity. Revenue Expenses Sales Rs. 500,000 Cost of Goods Sold Rs. 200,000 Other Revenues Rs. 50,000 Operating Expenses Rs. 100,000 Interest Expense Rs. 10,000 Tax Expense Rs. 20,000 Net Income Rs. 220,000 Additional Information: I. Depreciation Expense: Rs. 30,000 II. Changes in Working Capital: Increase in Accounts Receivable: Rs. 10,000. Decrease in Inventory: (Rs. 5,000). Increase in Accounts Payable: Rs. 8,000. Increase in Accrued Expenses: Rs. 3000

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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Consider the following information from the Income Statement of Production Ltd. on 31st December 2022 (accounting year-end): Operating profit equals £30,000 and depreciation expense equals £2,000. In addition, consider the following information from the Statement of Financial Position of Production Ltd.: Trade Receivables Trade Payables 31st December 2021 31st December 2022 £ £ 2,500 9,000 32,000 12,000 Additional information: • Tax paid on cash during the current accounting year amounts to £12,500 • Gain on asset disposal equals £1,000. Considering all the previous information from Production Ltd., which of the following statements is true on 31st December 2022? O a. Production Ltd. shows a negative net cash flow from operating activities which equals -£8,000. O b. Production Ltd. shows a positive net cash flow from operating activities which equals £3,000. O c. The net cash flow from operating activities equals £0 O d. None of the answers is true.
Current Attempt in Progress Lee Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5180000 $3979520. $5180000. $6380480. $5706480. 704480 159000 337000 Lee should report cash provided by operating activities of
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