factors-calculating cash inflows and cash outflows
Write down the factors which are taken in consideration while calculating cash inflows and cash outflows?
Expert
The factors that have to be taken in consideration while calculating the cash outflows and cash inflows are illustrated below:-
1) Net income that is provided by the operations. 2) Non-cash expenditures 3) Gain and Loss on sales on assets. 4) Non-cash current liabilities and assets except dividends payable and payable notes. 5) Cash collection that is the chief principle component of the cash flow and it is the real cash that is being received throughout accounting period that has to be taken from the customers 6) Financing that result in alters in size and composition of the equity capital and it as well show the activities effect of the borrowings of the enterprise.
7) It also consists of equity instruments and issue shares.
Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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