X Ltd. made a profit of Rs.1,20,000 after charging depreciation of ? 20,000 on assets and a transfer to general reserve of Rs.30,000. The goodwill written off was Rs.7,000 and the gain on sale of the machineries was Rs.3,000. Changes in the value of current assets and liabilities at the end of the year:
Debtors showed an increase of Rs.6,000; creditors an increase of Rs.10,000; prepaid expenses an increase of Rs.200; bills receivable a decrease of Rs.3,000; bills payable a decrease of Rs.4,000 and outstanding expenses a decrease of Rs.2,000. Ascertain cash flow from operating activities.
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