Advanced AccountingQuestion 5277 of 305
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11. What would be the value of Cash Flow from Operating Activities?

Options

A` 1,29,500
B` 1,54,500
C` 1,45,300
D` 4,04,000
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Correct Answer

✅ Option B — ` 1,54,500

All Options:

  • A` 1,29,500
  • B` 1,54,500 ✓
  • C` 1,45,300
  • D` 4,04,000

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Detailed Solution & Explanation

To compute Net Cash Flow from Operating Activities from the summary cash account under AS 3:
1. Operating Inflows:
- Cash Sales: ‘ 15,56,000\displaystyle `\,15,56,000
- Trade Receivables: ‘ 7,40,000\displaystyle `\,7,40,000
- Income Tax Refund: ‘ 25,000\displaystyle `\,25,000
- Total Operating Inflows = ‘ 23,21,000\displaystyle `\,23,21,000
2. Operating Outflows:
- Trade Payables: ‘ 19,60,000\displaystyle `\,19,60,000
- Office & Selling Exp: ‘ 1,20,000\displaystyle `\,1,20,000
- Trade Commission: ‘ 40,500\displaystyle `\,40,500
- Payment for Overheads: ‘ 46,000\displaystyle `\,46,000
- Total Operating Outflows = ‘ 21,66,500\displaystyle `\,21,66,500
3. Net Cash from Operating Activities is:
Net Operating Cash Flow=‘ 23,21,000−‘ 21,66,500=‘ 1,54,500\text{Net Operating Cash Flow} = `\,23,21,000 - `\,21,66,500 = `\,1,54,500
Hence, **Option B** is the correct answer.

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