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Cash Flow from Operating Activities

Particulras Rs. Amount (Rs.)


Closing Balance of Reserve and Surplus 2,50,000
Less: Opening Balance of Reserve & Surplus 1,80,000
70,000
Add: Divident paid during the year 40,000
Net Profit befote Tax and Extraordinary Items 1,10,000
Add: Non-Cash & non-operating expenses (Dep) 30,000
1,40,000
Less: Non-Operating income (Profit on sale of Machinary) 8,000
Operating Profit before Working Capital changes 1,32,000
Adjustment for changes in CA and CL other than Cash:
Add: Decrease in Current Assets
Add: Increase in Current Liabilities (Trade Payabale) 30,000
1,62,000
Less : Increase in Current Assets
Trade Receivable 70,000
Inventories 10,000 80,000
82,000
Less: Decrease in Current Liabilities (Other CL) 5,000
CASH FLOW FROM OPERATING ACTIVITIES 77,000
CASH FLOW STATEMENT
For the year ended 31st March 2007
Particulras Amount Amount (Rs.)
Cash flow from Operating Activities :
Net Profit before Tax and extraordinary Items 54,000
Add: Depreciation 18,000
Operating Profit before Working Capital Changes 72,000
Add: Decrease in CA (Stock) 6,000
Add: Increase in CL (CL) 10,000 16,000
Less: Increase in CA (Debtors) 6,800
Less: Decrease in CL Nil -6,800
Net Cash from Operating Activities 81,200
Cash Flow from Investing Activities :
Purchase of Land -20,000
Purachse of Building -10,000
Purchase of Machinary -30,000
Net Cash used in Investing Activities -60,000
Cash Flow from Financing Activities :
Proceeds of Loan from Z Ltd. 40,000
Repayment of Bank Loan -10,000
Payment of Dividend -52,000
Net Cash used in Financiang Activities -22,000
Net Decrease in Cash and Cash Equivalents -800
Opening Balance of Cash and Cash Equivalents 8,000
Closing Balance of Cash and Cash Equivalents 7,200

Working Note :
Closing Balance as per P&L A/C 98,000
Less: Opening Balance as per P&L A/C 96,000
Profit for the year 2,000
Add: Dividend paid 52,000
Net Profit before Tax 54,000
Working Note - Fixed Assets (Machinary)
5,10,000
Sold 40,000
Depreciation 70,000 1,10,000
4,00,000
Purchased 2,20,000
Total 6,20,000
CASH FLOW STATEMENT
For the year ended 31sr March 2007
Particulars Amount Amount (Rs.)
A. Cash Flow from Operating Activities
Closing Balance as per P&L A/C 2,70,000
Less: Opening Balance as per P&L A/C 1,10,000 1,60,000
Add : Appropreiation of Fund
Interim Dividend (3,00,000 @ 15%) 45,000
Preference Dividend (2,00,000 @ 12%) 24,000
Increase in Provision for DD 5,000 74,000
NET PROFIT BEFORE TAX 2,34,000
Add: Non Operating Expenses :
Depreciation 70,000
Loss on sale of Machinary 15,000
Interest on Long term Borrowing(Debentures) 10,000
Premium Payable on Redeemption of Pref Share 5,000
1,00,000
Less: Non Operating Income :
Interest on Investment -3,000 97,000
Operating Profit Before Working Capital changes 3,31,000
Add: Decrese in CA and Increase in CL
Decrease in Stock 10,000
Increase in Creditors 75,000
Less: Increase in CA and Decrease in CL
Increase in debtors -100,000 -15,000
NET CASH FROM OPERATING ACTIVITIES 3,16,000
B. Cash Flow from Investing Activities
Purchase of Fixed Assets -220,000
Proceeds from Sale of Machinary 25,000
Interest on Investment 3,000
Purchase on Investment -50,000
NET CASH USED IN INVESTING ACTIVITIES (2,42,000)
C. Cash flow from Financing Activities
Proceeds from the issue of Share Capital 50,000
Proceeds from Long term borrowings
(Rs. 1,00,000 - 5,000 Discount on Issue of Debentures) 95,000
Redeemption of Pref. Share (1,00,00+5,000) -105,000
Interim Devidend Paid -45,000
Preferance Dividend paid -24,000
Interest paid to Debetures -10,000
NET CASH USED IN FINANCING ACTIVITIES -39,000
Net Increase in Cash & Cash Equivalents (A+B+C) 35,000
Cash & Cash Equivalents in the beginning 40,000
Cash & Cash Equivalents at the End 75,000
Depreciation 4,00,000 -10,000 - 3,20,000 = 70,000
Purchase of Fixed Assets 50,000 - 8,000 = 42,000 - 60,000 = (18,000)
CASH FLOW STATEMENT
For the year ended 31st March 2007
Particulars Amount Amount (Rs.)
A. Cash Flow from Operating Activities:
Closing Balance as per P&L A/C 68,000
Less: Opening Balance of P&L A/C 56,000 12,000
Add: Appropriation of Fund:
Interim Dividend 40,000
Provision for Tax 9,000
Transfer to Reserve 10,000 59,000
Net Profit before Tax and Extra Ordinary Items 71,000
Add: Non-Operating Expenses:
Depreciation 70,000
Less: Non-Operating Incomes:
Profit on sale of Investment -500
Profit on sale of Fixed Assets -2,000 67,500
Operating Profit before Working Capital Changes 1,38,500
Add: Decrease in CA and Increase in CL
Decrease in Stock 30,000
Less: Increase in CA and Decrease in CL
Increase in Debtors -245,000
Decrease in Creditors -34,000 -249,000
Cash Generated from Operating -110,500
Less: Income Tax Paid (75,000 - (10,000-9,000) -74,000
NET CASH USED IN OPERATING USED -184500
B. Cash Flow from Investing Activities
Purchase on Investment -18,000
Sale of Fixed Assets 12,000
Sale of Investment 8,500
NET CASH FROM INVESTING ACTIVITIES 2,500
C. Cash Flow from Financing Activities
Mortgage Loan 2,70,000
Dividend Paid -40,000
NET CASH FROM FINANCING ACTIVITIES 2,30,000
Net Increase in Cash & Cash Equivalents (A+B+C) 48,000
Add: Cash & Cash Equivalents at the beginning of year 1,49,000
Cash & Cash Equivalents at the end of year 1,97,000
Cash

Working Notes :
Depreciation 80,000 -10,000 = 70,000 - 55,000 = 15,000 + 3,000 = Rs. 18,000
Loss on sale of Machinary 10,000 - 3,000 = 7,000 - 5,000 = Rs. 2,000 Loss
Drawings 1,25,000 + 45,000 = 1,70,000 - 1,53,000 = Rs. 17,000 (Drawing)
80,000
25,000
1,05,000
10,000
15,000
18,000
CASH FLOW STATEMENT
For the year ended 31st March 2007
Particulars Amount Amount (Rs.)
A. Cash flow from Operating Activities:
Net Profit before Tax 45,000
Add: Non Operating Expenses
Depreciation 18,000
Loss on sale of Machinary 2,000 20,000
Operating Profit before Working Capital Changes 65,000
Add: Decrease in CA and Increase in CL
Decrease in stock 10,000
Increase in Creditors 4,000
Less: Increase in CA and Decrease in CL
Increase in Debtors -20,000 -6,000
NET CASH FROM OPERATING ACTIVITIES 59,000
B. Cash flow from Investing Activities:
Purchase of Land -10,000
Purchase of Building -25,000
Proceeds from sale of Machine 5,000
NET CASH UNSED IN INVESTING ACTIVITIES -30,000
C. Cash flow from Financing Activities:
Payment of Mrs. A's Loan -25,000
Proceeds from Bank Loan 10,000
Drawings -17,000
NET CASH UNSED IN FINANCING ACTIVITIES -32,000
Net Decrease in Cash & Cash Equivalents (A+B+C) -3,000
Add: Cash & Cash Equivalents at the beginning of year 10,000
Cash & Cash Equivalents at the end of year 7,000
Working Note:
CAPITAL ACCOUNT
Particulrs Rs. Particulrs Rs.
To Cash (Drawing - Balance fig.) 10,000 To Balance b/d 1,08,000
To Balance c/d (given) 1,68,000 To Profit and Loss 50,000
To Additional Capital 20,000
1,78,000 1,78,000

FIXED ASSETS ACCOUNT


Particulrs Rs. Particulrs Rs.
To Balance b/d 95,000 By Depreciation 5,000
To Bank (Purchase - Balancing fig) 45,000 By Balance c/d (given) 1,35,000
1,40,000 1,40,000
CASH FLOW STATEMENT
For the year ended 31st March 2007
Particulars Amount Amount (Rs.)
A. Cash flow from Operating Activities:
Net Profit before Tax 50,000
Add: Non Operating Expenses
Depreciation 5,000
Operating Profit before Working Capital Changes 55,000
Add: Decrease in CA and Increase in CL
Decrease in Debtors 4,000
Decrease in BR 5,000
Increase in Creditors 2,000 11,000
Less: Increase in CA and Decrease in CL
Increase in Stock -8,000
Decrease in Oustanding Exp -4,000 -12,000
NET CASH FROM OPERATING ACTIVITIES 54,000
B. Cash flow from Investing Activities:
Purchase of Fixed Assets -45,000
NET CASH UNSED IN INVESTING ACTIVITIES -45,000
C. Cash flow from Financing Activities:
Payment of Loan from X -5,000
Additional Capital Introduced 20,000
Drawings -10,000
NET CASH UNSED IN FINANCING ACTIVITIES 5,000
Net Increase in Cash & Cash Equivalents (A+B+C) 14,000
Add: Cash & Cash Equivalents at the beginning of year 8,000
Cash & Cash Equivalents at the end of year 22,000

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