Practice - Cash Flow from Operating Activities
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Practice Questions
Test your understanding with targeted questions
What is the primary purpose of the Cash Flow Statement?
💡 Hint: Think about liquidity and cash management.
Define Operating Activities.
💡 Hint: Try to think of examples of cash coming in and cash going out.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is Cash Flow from Operating Activities primarily associated with?
💡 Hint: Think about what generates revenue.
The Indirect Method involves starting with which financial figure?
💡 Hint: Consider what figure is reported on the income statement.
1 more question available
Challenge Problems
Push your limits with advanced challenges
Company X has a net profit of ₹500,000. Their depreciation expense is ₹50,000, accounts receivable increased by ₹20,000, accounts payable decreased by ₹30,000, and they've paid ₹70,000 in taxes. Calculate the net cash flow from operating activities.
💡 Hint: Be careful to add and subtract the items in the right order.
A manufacturing firm calculates a net cash flow from operations of ₹200,000. They notice that during the year, inventory has drastically increased. Discuss how this will impact the cash position of the firm.
💡 Hint: Think about cash tied up in stock versus cash flow.
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