Calculate cash flows from operating activities from the following information.

Working Notes:
1. Other Income = Profit on Sale of Machinery (Rs 2,000 ) +
Income Tax Refund (Rs 3,000)
= Rs 5,00
2. Depreciation and Amortisation Expenses = Depreciation (Rs 5,000) + Goodwill Amortised (Rs 2,000)
Other Expenses = Rent (Rs 10,000) + Loss on Sale of Equipment (Rs 3,000) + Provision for Taxation (Rs 8,000) ltbrge = Rs 21,000
Additional Information:

Explanation

Working Notes:
1. Net profit before taxation & extraordinary item = Rs 2,000 + Rs 8,000 – Rs 3,000 = Rs 7,000
2. Income tax paid during the year has been ascertained by preparing provision for taxation account as follows: