Amount Particulars (<) Surplus i.e. Balance in Statement $\displaystyle 6,28,000$ of Profit and Loss Provision for Tax $\displaystyle 1,50,000$ Proposed Dividend for the previous year $\displaystyle 72,000$ Depreciation $\displaystyle 1,40,000$ Loss on Sale of Machinery $\displaystyle 30,000$ Gain on Sale of Investments $\displaystyle 20,000$ Dividend Received on Investments $\displaystyle 6,000$ Increase in Current Liabilities $\displaystyle 1,61,000$ Increase in Current Assets $\displaystyle 6,00,000$ (other than cash and cash equivalents) Decrease in Current Liabilities $\displaystyle 64,000$ Income Tax Paid $\displaystyle 1,18,000$

Cash Flows from Operating Activities Particulars Details Amount ₹ ₹ $\displaystyle 8,50,000$ Net Profit before Tax and Extraordinary items Adjustments for Non- Cash and Non- operating items Add: Depreciation $\displaystyle 1,40,000$ Loss on Sale of Machinery $\displaystyle 30,000$ Less: Gain on Sale of Investments $\displaystyle (20,000)$ Dividend Received on Investments $\displaystyle (6,000)$ Operating profit before Working Capital changes $\displaystyle 9,94,000$ Add: Increase in Current Liabilities Less: Increase in Current Assets $\displaystyle 1,61,000$ Decrease in Current Liabilities ($\displaystyle 6,00,000$) $\displaystyle (64,000)$ Cash generated from operations $\displaystyle 4,91,000$ Less: Income Tax paid ($\displaystyle 1,18,000$) Net cash inflows from Operating Activities $\displaystyle 3,73,000$ Calculation of Net Profit before Tax and Extraordinary items Surplus = $\displaystyle 6,28,000$ + Provision for Tax = $\displaystyle 1,50,000$ + Proposed Dividend = $\displaystyle 72,000$ $\displaystyle 8,50,000$ PART B OPTION – II (Computerised Accounting)