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What is meant by Cash from Operating Activities? 


Operating activities are the principal revenue producing activities of the enterprise. Cash flow from operating activities are derived from the principal revenue producing activities of the business. In other words, cash from Operating Activities means receipts of cash and cash equivalents in exchange of sale of produced goods and services.

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Under which type of activity will you classify Dividend received by a financial company while preparing Cash Flow Statement? 


Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liva Ltd. as at 31-3-2013 and 31-3-2012:
Notes to Accounts: 
Note 1

Particulars

2013
Rs

2012
Rs

Reserves and Surplus
Surplus (balance in statement of profit and loss)

1,32,000

24,000




While preparing Cash Flow Statements what type of activity is, Payments of Cash to acquire Debentures by an investment company?


State the purpose of preparing a Cash Flow Statement.


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