Compute cash generated from Operations during the year 2021-22, from  the following data:  

Particulars			April 1, 2021	March 31, 2022
Sundry debtors			R. 30,000	R. 40,000
Sundry creditors			48,000	30,000
Outstanding expenses			3,000	6,000
Outstanding income			1,000	1,000
Stock in trade			55,000	60,000
Prepaid expenses			3,000	2,000
Accumulated depreciation
(no retirements during the year)			50,000	60,000
Provision for doubtful accounts			1,500	2,000
Dividends payable			--	3,000
Bills receivable			10,000	12,000
Bills payable			8,000	6,000
Net income before taxes (as per profit		and loss	--	80,000

Word Count : 658

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To calculate cash generated from operations, we need to use the indirect method and adjust net income for non-cash items and changes in working capital.

First, we need to calculate the changes in working capital:

Change in sundry debtors = 40,000 - 30,000 = 10,000
Change in sundry creditors = 30,000 - 48,000 = -18,000 (Note: negative change means decrease in current liability, which is a source of cash)
Change in outstanding expenses = 6,000 - 3,000 = 3,000
Change in outstanding income = 1,000 - 1,000 = 0
Change in stock in trade = 60,000 - 55,000 = 5,000
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Degree : MASTER DEGREE PROGRAMMES
Course Name : Master in Business Administration
Course Code : MBA
Subject Name : Accounting and Finance for Managers
Subject Code : MS 4
Year : 2023