Answer to Question #45457 in Finance for Himanshu Shrivastava
Following is the balance sheet for the period ending 31st March 2011 and 2012. If the current year’s net loss is Rs.38,000, Calculate the cash flow from operating activities.
Short-term loan to employees
Provision for doubtful debts
An accounting item indicating the money a company brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service. Cash flow from operating activities does not include long-term capital or investment costs. It does include earnings before interest and taxes plus depreciation minus taxes. Cash Flow From Operating Activities = EBIT + Depreciation - Taxes So, Cash Flow From Operating Activities = -38,000 - 18,000 + 8,000 - 1,200 = -49,200