How do you treat depreciation in calculating cash flow from operating activities? Post category:Accountancy Reading time:1 mins read SOLUTION Depreciation is added back to net profit while calculating cash flows from operating activities. Please Share This Share this content Opens in a new window X Opens in a new window Facebook Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostHow do you treat profit or loss on sale of fixed assets for calculating Cash flow from operating activities? Next PostWhy do we add back depreciation to net profit while calculating cash flows from operating activities? (C.B.S.E. 2016, C) You Might Also Like Net Profit before Interest and Tax Rs. 4,00,000; 15% Long-term Debt Rs. 8,00,000; Shareholders’ Funds Rs. 4,00,000. Calculate Return on Investment. August 17, 2022 What is meant by ‘Reconstitution of a Partnership Firm’? (Delhi and Al 2014) October 7, 2022 A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary Journal entries. August 1, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
Net Profit before Interest and Tax Rs. 4,00,000; 15% Long-term Debt Rs. 8,00,000; Shareholders’ Funds Rs. 4,00,000. Calculate Return on Investment. August 17, 2022
A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary Journal entries. August 1, 2022