Add: Depreciation on Fixed Assets 20,000 Witting off Preliminary Expenses 10,000 Loss on Sale of Furniture 1,000 Profit on Sale of Machinery (6,000) Less: Operating Profit before Working Capital Changes 2,99,000 Add: Increase in Creditors 10,000 Decrease in Bills Receivable 3,000 Less: Increase in Debtors (6,000) Decrease in Bills Payable (4,000) Increase in Prepaid Expenses (200) Net Cash Flow from Operating Activities 3,01,800 Net Flow of Cash = Inflow of Cash – Outflow of Cash
Add: Depreciation on Fixed Assets Witting off Preliminary Expenses Loss on Sale of Furniture Less: Profit on Sale of Machinery Operating Profit before Working Capital Changes Add: Increase in Creditors Decrease in Bills Receivable Less: Increase in Debtors Decrease in Bills Payable Increase in Prepaid Expenses Net Cash Flow from Operating Activities 20,000 10,000 1,000 (6,000) 2,99,000 10,000 3,000 (6,000) (4,000) (200) 3,01,800 Net Flow of Cash = Inflow of Cash – Outflow of Cash
accountancy-xii.docx