question_answer

Rakshak Ltd. Made an operating profit of Rs. 1,85,500 after charging depreciation of Rs. 31,200. During that year, trade payables increased by Rs. 26,600 and inventory increased by Rs. 40,300. There was no change to trade receivables. Assuming that no other factors affected it, what would be the cash generated from operations.

Answer:

Ans.

Cash generated from operations	Amt (Rs.)
Operating Profit	1,85,500
(+) Depreciation	31,200
	2,16,700
(-) Increase in inventory	(40,300)
(+) Increase in trade payables	26,600
	2,03,000