Answer 1.

Cash Flow Statement for Hardin Demand Ltd. as on 31 st March,

20XX
PARTICULARS

(A) Cash generated from operating activities

Net Profit
(i)
Add/Less: Adjustment for non-cash and nonoperating items
Depreciation
Loss on sale of machinery
Operating profit before working capital changes
(ii)
Add/Less: Adjustment for working capital items
Decrease in stock
Increase in creditors

AMOUNT
()

5,50,000

1,00,000
50,000
1,50,000

60,000
70,000
1,30,000

(iii)
(A) Cash generated from operating activities (i + ii +
iii)

8,30,000

(B) Cash generated from investing activities

Purchase of building
Sale of machinery
Interest received
(B) Cash generated from investing activities

(5,00,000)
1,50,000
26,000

(C) Cash generated from financing activities

Repayment of short term loans
Interest paid
Loan taken for five year period
(C) Cash generated from financing activities

(1,00,000)
(45,000)
8,45,000

NET INCREASE IN CASH (A + B + C)

AMOUNT
()

(3,24,000)

7,24,000
12,30,000