Adjusted profit and loss method, Managerial Accounting

Assignment Help:

Under this method, approximated profit is calculated depends on transactions of the ensuing period. Afterward, decrease or increase in working capital is determined adjusting the estimated profit through cash inflows and cash outflows. This is like cash flow statement. Some banks in India use forms for calculating working capital in this method. A specimen of such a form is specified below.

Computation of Working Capital

	Rs.
Net Income	..............
Add: (i) Non-cash Items	...............
Working Capital Provided Operations	... ... ... ...
Add: (ii) Cash inflow Items	..............
Less: Cash Outflow items	.
Net Changes in Working Capital	..............

Related Discussions:- Adjusted profit and loss method

Dentify and explain the many classsification of cost, dentify and explain t...

dentify and explain the many classsification of cost for planning,control,performance evaluation and decision making

Marginal costing technique, how company apply marginal costing techniques s...

how company apply marginal costing techniques show with an example

Determine the distribution cost and research cost, Determine the Distributi...

Determine the Distribution cost and Research cost Distribution cost: The cost of sequence of the operations which begin with making the packed product available for dispa

What is activity ratio, What is Activity ratio Funds are invested in se...

What is Activity ratio Funds are invested in several assets in business to make sales and earn profits. The efficiency with which assets are managed directly affects the volume

Standerd costing, Ask queThe standard cost of chemical mixture ~ PQ’ is as ...

Ask queThe standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticip

Accounting concepts, implications of applying accounting concepts wrongly

implications of applying accounting concepts wrongly

ACCOUNTING VARIATION, MAKE A TRADING ACCOUNT

MAKE A TRADING ACCOUNT

Uncertainty of demand-determining the safety stocks level, UNCERTAINTY OF D...

UNCERTAINTY OF DEMAND Demand is the most troublesome variable to predict accurately. Actually, demand may fluctuate from day to day, from week to week or from month to month. T

Extra shift decision, EXTRA SHIFT DECISION These decisions are concerne...

EXTRA SHIFT DECISION These decisions are concerned with whether or not a company should work for 8 hrs, 16hrs, or 24 hrs a day or week days only or weekends also. The factors

Welnor industrial gas , Prepare cash budget?

Prepare cash budget?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages