Cash Flow Statement Particulars Net Profit before Tax & extraordinary items A.

Cash flow from Operating activities Add:Non cash &Non operating expense Depreciation on Fixed Asset Operating profit before working capital changes Add: Decrease in Debtors Less: Increase in Stock Increase in Bills Receivable Decrease in Creditors Cash Inflow from Operating Activities B.Cash Flow from Investing Activities Purchase of Fixed Assest Cash Outflow from Investing Activities C.Cash flow from Financing Activities Issue of Equity Shares Repayment of Bank Loan Payment of dividend Cash Inflow from Financing Activities Net Decrease in Cash &Cash Equivalents(A+B+C) Add:Opening Balance of Cash Closing Balance of Cash & Cash Equivalents ` ` 110,000

Working Notes: 1.Calculation of Net Profit befo Increase in Profit & Loss Add:Proposed Dividend

20,000 40,000 (20,000) (10,000) (20,000)

20,000 130,000 Particulars To balance b/d To Bank A/c (Purchase of Fixed Asset)

(10,000) 120,000

(200,000) (200,000) Particulars To balance c/d

100,000 (20,000) (60,000) 20,000 (60,000) 90000 30000

Working Notes: 1.Calculation of Net Profit before Tax : Increase in Profit & Loss Add:Proposed Dividend

` 40,000 70,000 110,000

Fixed Assest A/c ` Particulars To balance b/d 400,000 To Bank A/c 200,000 By balance c/d (Purchase of Fixed Asset) 600,000

` 600,000 600,000

To balance c/d

Accumulated Depreciation A/c ` Particulars ` 100,000 By balance b/d 80,000 By Profit & Loss A/c 20,000 (Current year depreciation) 100,000 100,000