Answer to Question #45457 in Finance for Himanshu Shrivastava

Question #45457
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. 31st MARCH 2011 2012 Short-term loan to employees 15,000 18,000 Creditors 30,000 8,000 Provision for doubtful debts 1,200 -
Expert's answer
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

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal