if profit is 35160
Short term loans and advances (Adv. Tax) 3600 closing and 3000 opening.
additional information... 3000 paid as advance tax.
what would be cash from operating activity
please help...
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Cash Flow Statement
Replies (7)
35160+
Provision for taxes 3600
Less advance tax paid 3000
but y we r deducting 3000?
and why we r adding 3600?
and why we r adding 3600?
| Advance Tax A/c | |||
| To Balance b/d (Opg.) | 3,000 | By P&l-Current year tax (Bal fig) | 2,400 |
| To Cash/Bank(Paid) | 3,000 | By Balance c/d(Clg.) | 3,600 |
| 6,000 | 6,000 | ||
| Cash flow from Operating Activities | |||
| Net Profit | 35,160 | ||
| Less: Current Year Tax | 2,400 | ||
| Cash flow from Operating Activities | 32,760 | ||
we create provision for this year 3600 which is not a cash outflows.Our actual cash outflow is 3000.so we add 3600 and deduct 3000.
but the answer of this question shows 32160
You may try another question for your confirmation.
this profit may be profit before tax.so read question properly
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