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