Compute cash from operations from the following figures:(i) Profit for

Compute cash from operations from the following figures:(i) Profit for the year 2005-06 is a sum of Rs 10,000 after providing for depreciation of Rs 2,000.(ii) The current assets of the business for the year ended March 31, 2006 and 2007 are as follows: MarchMarch 31, 200631, 2007 RsRsDebtors10,00012,000Provision for Doubtful Debts1,0001,200Bills Receivables4,0003,000Bills Payables5,0006,000Creditors8,0009,000Inventories5,0008,000Short-term Investments10,00012,000Outstanding Expenses1,0001,500Prepaid Expenses2,0001,000Accrued Income3,0004,000Income received in advance2,0001,000

Answer»

Compute cash from operations from the following figures:

(i) Profit for the year 2005-06 is a sum of Rs 10,000 after providing for depreciation of Rs 2,000.

(ii) The current assets of the business for the year ended March 31, 2006 and 2007 are as follows:

	March	March
	31, 2006	31, 2007
	Rs	Rs
Debtors	10,000	12,000
Provision for Doubtful Debts	1,000	1,200
Bills Receivables	4,000	3,000
Bills Payables	5,000	6,000
Creditors	8,000	9,000
Inventories	5,000	8,000
Short-term Investments	10,000	12,000
Outstanding Expenses	1,000	1,500
Prepaid Expenses	2,000	1,000
Accrued Income	3,000	4,000
Income received in advance	2,000	1,000