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 From the following Information, calculate Inventory Turnover Ratio: Credit Revenue from Operations Rs. 3,00,000; Cash Revenue from Operations Rs. 1,00,000, Gross Profit 25% of Cost, Closing Inventory was 3 times the Opening Inventory. Opening Inventory was 10% of Cost of Revenue from Operations. August 16, 2022 The capital accounts of Tisha and Divya showed credit balances of 10,00,000 and 7,50,000 respectively after taking into account drawings and net profit of Rs. 5,00,000. The drawings of the partners during the year 2021-22 were:(i) Tisha withdrew 25,000 at the end of each quarter.(ii) Divya’s drawings were: October 11, 2022 A Ltd., engaged in the business of retailing of two wheelers, invested Rs. 50,00,000 in the shares of a manufacturing company. State with reason whether the dividend received on this investment will be Cash Flows from Operating Activities or Investing Activities. October 6, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.
From the following Information, calculate Inventory Turnover Ratio: Credit Revenue from Operations Rs. 3,00,000; Cash Revenue from Operations Rs. 1,00,000, Gross Profit 25% of Cost, Closing Inventory was 3 times the Opening Inventory. Opening Inventory was 10% of Cost of Revenue from Operations. August 16, 2022
The capital accounts of Tisha and Divya showed credit balances of 10,00,000 and 7,50,000 respectively after taking into account drawings and net profit of Rs. 5,00,000. The drawings of the partners during the year 2021-22 were:(i) Tisha withdrew 25,000 at the end of each quarter.(ii) Divya’s drawings were: October 11, 2022
A Ltd., engaged in the business of retailing of two wheelers, invested Rs. 50,00,000 in the shares of a manufacturing company. State with reason whether the dividend received on this investment will be Cash Flows from Operating Activities or Investing Activities. October 6, 2022