Question
Opening Cash & Bank Balance = ₹1,20,000 Closing
Cash & Bank Balance = ₹2,00,000 Net Increase in Working Capital during the year = ₹80,000 Cash Flow from Investing = ₹(1,00,000) Cash Flow from Financing = ₹1,60,000 What is Cash Flow from Operations?Solution
Net Increase in Cash = ₹2,00,000 – ₹1,20,000 = ₹80,000 Net Cash Flow = CFO + CFI + CFF ⇒ ₹80,000 = CFO – ₹1,00,000 + ₹1,60,000 ⇒ CFO = ₹80,000 + ₹1,00,000 – ₹1,60,000 = ₹20,000
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