Use the direct method to prepare the cash flows from operating activities sectio

Question

Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash, or cash payments.

   

Operating Activities Section

   

Cash flows from operating activities:

  

$  

  

$  

  

  

  

Net cash flow from operating activities

$  

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Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash, or cash payments.

   

Operating Activities Section

   

Cash flows from operating activities:

  

$  

  

$  

  

  

  

Net cash flow from operating activities

$  

Explanation / Answer

CASH FLOW FROM OPERATING ACTIVITIES

Particulars

Amount (Rs)

Salaries Paid

Cash Sales

Payment to Creditors

Net Cash Flow from operating Activities

1,000

1,97,000

-1,000

1,97,000

Particulars

Amount (Rs)

1. Operating Cash Receipts

Salaries Paid

Cash Sales

1. Operating Cash Payment

Payment to Creditors

Net Cash Flow from operating Activities

1,000

1,97,000

-1,000

1,97,000

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