Practice - Solved Example
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Practice Questions
Test your understanding with targeted questions
What do you add back to the net profit before tax?
💡 Hint: Consider what non-cash expenses are adjusted.
What happens when the amount of debtors increases?
💡 Hint: Think about how sales on credit affect cash flow.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does a cash flow statement NOT include?
💡 Hint: Consider the basis on which cash flow is measured.
True or False: Depreciation is added back when calculating cash flow from operations.
💡 Hint: Think about how non-cash expenses are treated.
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Challenge Problems
Push your limits with advanced challenges
A company’s profit before tax is ₹300,000. It has a ₹70,000 depreciation, ₹40,000 increase in debtors, ₹13,000 decrease in creditors, and ₹60,000 tax paid. What is the Net Cash Flow from Operating Activities?
💡 Hint: Apply all adjustments carefully in the calculation.
Discuss and illustrate how cash flow from investing activities differs from cash flow from operating activities. Give examples.
💡 Hint: Consider what activities each category covers.
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