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<p><strong>Creditors at the end Rs.15,000, cash from operation will be_</strong></p> <p><strong>1. Rs.20,000</strong><strong>2. Rs.5000</strong><strong>3. Rs.10,000</strong><strong>4. Rs.15,000</strong></p>
answer : D)10,000
Receipt from sales 40,000
Trade payments. (25,000) see computation below
Expenses. (5,000)
Net cashflow. 10,000
AP , beg. 10,000
Purchases. 30,000
AP, end. (15,000)
Payment 25,000
Cash Collections from Sales 40000
Less: Cash Payments for Purchases25000
Less: Cash Payments for Operations 5000
Cash Flow from Operations 10000
Ans.3. Rs.10000
Provided the sales are all cash and expenses do not include non-cash; yes the answer is Rs.10,000
RS10000
10K
ans:3) Rs.10000
cash inflow : 40000 (sales)
cash outflow : creditors at beginning of period- 10000
purchases for the year- 30000
creditors at the end of period- (15000)
Aggregate cash outflow from purchases- 25000
cash outflow : expenses-5000
total cash inflow : 40000
total cash outflow : (25000) + (5000)
NET CASHFLOW : Rs.10000
The answer is3. Yes certainly10,000 is the net cash flow from operations provided all sales are on cash basis and all expenses / creditors paid for operating activities.
Answer is3:,
Sales: ,
Less:Purchases: (,)
Expenses: (5,)
Net income from operations 5,
Add: increase in liability 5, (,-,)
Net cash flow from operations ,
The method of computation is called indirect cash flow method
The answer is "3. Rs.10,000"
cash paid to creditors = begining + purchasing - ending
=10000 =25000
cash from operation =40000 - =10000
answer is15000
30. Rs.10,000
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