Answer to Question #272457 in Management for bhui

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 given items as (operating /

investing / financing), share the correct classification with logical reasoning

And calculate the cash flow from operating activities

Answer 1

All the above items fall under operating activities.

Items classified inthis category are an entity's primary source of revenue, so cash flows are generally associated with revenues and expenses.

 

The cash flow statement from operating activities is as below:

All the above items fall under operating activities.

Items classified in this category are an entity's primary source of revenue, so cash flows are generally associated with revenues and expenses.

 

The cash flow statement from operating activities is as below: