Question

The net profit before taxes as per the profit and loss account of Gaman Ltd is Rs 269244.

With the given set of information, classify the delivered items as (operating / investing /

financing), share the correct classification with logical reasoning, and calculate the cash flow

from operating activities

TABLE BELOW

Loss on sale of asset

95780

Dividend income

26000

Interest income

35000

Finance cost paid on debentures

12000

Gain on sale of investment

45000

Depreciation on fixed assets

85000

Amortization expenses

110000

Answer 1

All of the elements listed above are classified as operating activities.

Because items in this category represent an entity's principal source of revenue, cash flows are typically related to payments and costs.

The following is the cash flow statement from operating activities: