
Concept Introduction
Cash: It includes Cash in Hand & Deposits with Bank.
Cash Equivalents: It includes those investments which are short term investment and highly liquid i.e. maturity period is of three months or less.
Operating Activities: Operating Activities are the principal revenue generating activities of enterprise. In other words activities that are not financing and investing activities.
Current Assets: Current Assets are the assets that are either in the form of Cash & Cash Equivalents or can be converted into Cash or Cash Equivalent within a short period of time i.e. 12 months.
Current Liabilities: Current Liabilities are the liabilities which are repayable in a short period of time i.e. 12 months.
It can be calculated as “Working Capital = Current Assets minus Current Liabilities”
To Prepare:
The Cash Flow from Operating Activities as on 31st Dec 2015.

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Chapter 16 Solutions
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