
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.

Want to see the full answer?
Check out a sample textbook solution
Chapter 16 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
- General accountingarrow_forwardDon't use ai given answer accountingarrow_forwardMoonWear, Inc. offers an unconditional return policy. It normally expects 2.5% of sales at retail selling prices to be returned before the return period expires. Assuming that MoonWear records total sales of $12.5 million for the current period, what amount of net sales should it record for this period?arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





