S NO

A
1
2
3
4
5
6
7
8

D
E
F
PARTICULARS
CASH FLOW FROM OPERATING ACTIVITIES
BALANCE IN STATEMENT PROFIT AND LOSS CLOSING
LESS : OPENING BALANCE OF SURPLUS
NET PROFIT BEFORE TAX
ADD: NON CASH EXPENSES
ADD: NON OPERATING EXPENSES : INTEREST ON 12% DEBENTURES
OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES
ADD : INCRESE IN CURRENT LIABILITIES
ADD: CREDITORS
ADD BILL PAYABLES

LESS : INCREASE IN CURRENT ASSET AND DECRESE IN LIABILITIES

OUTSTANDING EXPENSES
TRADE RECEIVABLES
INVENTORIES
CASH FLOW FROM OPERATING ACTIVITIES
CASH FLOW FROM INVESTING ACTIVITIES
PURCHASE OF LAND AND BUILDING
LOAN AND ADVANCES
CASH USED IN INVESTMENT
CASH FOR FINANCIAL ACTIVITY
PROCEEDS FROM ISSUE OF EQUITY SHARE
REPAYMENT OF LONG TERM LOANS
INTEREST ON 12% DEBENTURES
TOTAL CASH FLOW FROM FINANCIAL ACTIVITY
NET INCREASE IN CASH AND CASH EQUIVALENTS (A + B + C)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR (3000 + 12000)
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (D + E) (5000 + 13000)
Amount Balance

70,000.00
50,000.00
20,000.00
8,000.00
12,000.00 20,000.00
40,000.00

20,000.00
80,000.00 100,000.00
140,000.00

5,000.00
20,000.00
20,000.00 45,000.00
95,000.00

(80,000.00)
(30,000.00)
(110,000.00)

50,000.00
(20,000.00)
(12,000.00)
18,000.00
3,000.00
15,000.00
18,000.00
PARTICULARS 2,021.00 2,020.00
REVENUE FROM OPERATIONS 1,000,000.00 1,000,000.00
OTHER INCOME 11,000.00 10,000.00
TOTAL 1,011,000.00 1,010,000.00
EXPENSES
PURCHASE OF STOCK 700,000.00 650,000.00
CHANGE IN INVENTORIES 48,000.00 50,000.00
EMPLOYEE BENEFITS 98,000.00 80,000.00
OTHER EXPENDITURES IN COMPANY 90,000.00 117,500.00
NET PROFIT (INCOME- EXPENDITURES ) 936,000.00 897,500.00
COMMON SIZE (2021, 2020)
98.91 99.01
1.09 0.99
100 100

69.24 64.36
4.75 4.95
9.69 7.92
8.9 11.63
92.58 88.86
COMPARATIVE ANALYSIS (2021)
0
10
0.1

7.69
-4
22.5
-23.4
4.29
PARTICULARS
NET PROFIT AFTER TAX
ADD: PROVISION FROM TAX
TOTAL
LESS: REFUND OF INCOME TAX 6,000.00
150,000.00
NET PROFIT BEFORE TAX AND EXTRAORDINARY
ADD: NON CASH/NON OPERATING ITEMS
DEPRECIATION
LOSS ON SALE OF INVESTMENT
LESS:NON CASH/NON OPERATING ITEMS
PROFIT ON SALE
DIVIDEND RECEIVED ON INVESTMENT
NET PROFIT BEFGORE WORKING CAPITAL CHANGES
ADD:DECRESE IN CURRENT ASSET
ADD:INCREASE IN CRERENT LIABILITIES
TOTAL
LESS:INCREASE IN CTRRENT ASSET (600,000.00)
DECRESE IN CURRENT LIABILITIES (128,000.00)
CASH FLOW FROM OPERATING ACTIVITIES BEFORE TAX AND OTHER ITEMS
NET OF REFUND
CASH FLOW FROM OPERATING ACTIVITIES AFTER TAX
ADD:EXTRAORDINARY ITEM: COMPENSATION FOR EARTHQUAKE DISASTER
CASH FLOW FROM OPERATING ACTIVITIES
TOTAL
1,406,000.00
306,000.00
1,712,000.00

156,000.00
1,556,000.00

280,000.00
60,000.00

(35,000.00)
(30,000.00)
1,831,000.00
20,000.00
302,000.00
2,153,000.00

(728,000.00)
1,425,000.00
(230,000.00)
1,195,000.00
150,000.00
1,345,000.00
GIVEN THAT CURRENT RATIO IS 2:1
Let us assume that current asset is Rs 60000
Current liability is Rs 30000 hence here current ratio is 2:1

Answer A

Assume that rs 10000 paid to creditor by cheque. Hence current

Answer B

Assume that goods purchas

Hence current ass
current liablities
New ratio is 7:4 he

Answer c

As per the given question sale of computer taking p

Hence the current asse

Answer D

If the transaction is decreased by rs. 10000

Therefore increasing curr
New ratio is 61:30 h
 If the transaction is decreased by rs. 10000
Therefore increasing curr
New ratio is 61:30 h

Anser E

Assuming that 5000 is given by dividend, so current asset will be 55000 and
New ratio will be 11:5 hence proved
o creditor by cheque. Hence current asset is reduced to rs. 50000 and current liability is 20000

Assume that goods purchased on credit = 10000

Hence current asset = 70000
current liablities = 40000
New ratio is 7:4 hence proved

n question sale of computer taking place (Book value =4000) for Rs 3000 only
Hence the current asset will be 63000

nsaction is decreased by rs. 10000 and cashed increased by rs. 11000,

Therefore increasing current asset by 1000
New ratio is 61:30 hence proved
 nsaction is decreased by rs. 10000 and cashed increased by rs. 11000,
Therefore increasing current asset by 1000
New ratio is 61:30 hence proved

d, so current asset will be 55000 and the current liability will be 25000,
ew ratio will be 11:5 hence proved