BRACC × MGO | US Tax Internship Training
Direct Method Cash Flow — Basic Case
Use actual cash receipts and actual cash payments. No accrual adjustments are needed in the operating section.
Case: Bengaluru Fresh Foods Inc.
The storyBengaluru Fresh Foods Inc. starts the year with ₹2,00,000 cash. During the year, it receives cash from customers and pays suppliers, employees and rent. It also buys equipment for cash and receives a bank loan.
Beginning Cash₹2,00,000
| Cash item | Amount |
|---|---|
| Cash collected from customers | ₹9,00,000 |
| Cash paid to suppliers | ₹3,00,000 |
| Cash paid to employees | ₹2,50,000 |
| Cash paid for rent | ₹1,00,000 |
| Equipment purchased for cash | ₹1,20,000 |
| Bank loan received | ₹80,000 |
Your task
Prepare the statement using the Direct Method. Calculate net cash from Operating, Investing and Financing activities, then reconcile to Ending Cash.
MGO training use only • BRACC Tax Lab