Cash Flow Statement

1 Cash flow from Operating Activity

Net Profit as per Profit & Loss A/c 100

Add:- Divident Paid 23000
Add:- PFT 33000
Add:- TNF to General Reserve 10000
Operating Profit Before Tax & EOI 66100

Add:- Depreciation on Fixed Assest 24000

Operating Profit Before Working Capital 90100

Add:- Decrease in Debtors 15800
Add:- Decrease in Stock 26000
Less:- Decrease in Creditors -14800

Less:- Income Tax Paid -28000

Cash Generated from Operating Activity 89100

2 Cash flow from Investing Activity

Less:- Purchase of machinery -33000

Less:- Purchase of Goodwill -5000

Cash Generated from Investing Activity -38000

3 Cash flow from Financing Activity

Less:- Divident Paid -23000

Add:- Issue of Share Capital 50000
Less:- Loan Paid -70000

Cash Generated from Financing Activity -43000

8100
Add:- Opening Balance 500
Closing Balance 8600
Working Notes:-
No.1 Provident for TAX
By Balance B/d 30000
To Bank a/c 28000

By P/L a/c 33000

To Bal C/d 35000
63000 63000

No.2 Machinery A/c

To Bal B/d 150000 By Depreciation a/c 14000

To Bank A/c 33000

By Balance c/d 169000

183000 183000

No.3 Building A/c

To Bal A/c 200000
By Depreciation A/c 10000

By bal c/d 190000

200000 200000