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A chemical company has net sales of Rs.50 lakhs, cash expenses (including taxes) of Rs.35 lakhs...

A chemical company has net sales of Rs.50 lakhs, cash expenses (including taxes) of Rs.35 lakhs and depreciation expenses of Rs.5 lakhs. If debtors decrease over the period by Rs.6 lakhs, what is its cash from operations?

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Answer #1
Cash Flows from Operating Activities
Net income      5,000,000
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation on fixed assets          500,000
Decrease in debtors          600,000
Cash expenses including taxes    (3,500,000)
   (2,400,000)
Net Cash Provided by Operating Activities      2,600,000
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