Assume that net income was Rs 200 000 depreciation expense was-01981

Online Quiz This subjective question is related to the book/course vu mgt411 Money & Banking. It can also be found in vu mgt411 Mid Term Solved Past Paper No. 6.

Question 1: Assume that net income was Rs. 200,000, depreciation expense was Rs. 10,000, accounts receivable increased by Rs. 15,000, and accounts payable increased by Rs. 5,000. Calculate the cash flow from operating activities.
Answer:
Net Cash Flow from Operating Activities 200000Rs.
Net income 200,000
Added back
Deprecation 10,000
Increase in account receivable (15,000)
Increase in Account payable 5000
net cash flow from OP activity 200,000

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