Kindly solve the Q
Dear Student
Working Note
Regards
| Cash Flow Statement | ||||
|---|---|---|---|---|
| Particulars | Amount | |||
| A. Cash Flow from Operating Activities | ||||
| Net profit before tax and extraordinary items | 530000 | |||
| Add: | Depreciation | 250000 | ||
| Operating Profit before working capital changes | 780000 | |||
| Less: | Increase in Current Assets/ Decrease in Current Liabilities | |||
| Trade Payables | 240000 | |||
| Inventories | 400000 | |||
| -640000 | ||||
| Add: | Decrease in Current Assets/ Increase in Current Liabilities | |||
| Trade receivables | 400000 | |||
| 400000 | ||||
| Cash from operating activities | 540000 | |||
| Less: | Income Tax Paid | -100000 | ||
| Net Cash flow from operating activities | 440000 | |||
| B. Cash Flow from Investing Activities | ||||
| Purchase of Investments | -200000 | |||
| Sale of Plant & Machinery | 70000 | |||
| Purchase of Land & Building | -400000 | |||
| Purchase of Plant & Machinery | -690000 | |||
| cash flow from investing activities | -1220000 | -1220000 | ||
| C. Cash Flow from Financing Activities | ||||
| Interest Paid | -20000 | |||
| Issue of Debentures | 400000 | |||
| Dividend Paid | -200000 | |||
| Issue of Share Capital | 400000 | |||
| Add: | Net Cash flow from financing activities | 580000 | 580000 | |
| Opening Cash & Cash Equivalents | 200000 | |||
| Closing Cash & Cash Equivalents | 0 | |||
Working Note
| Particulars | Amount | |
|---|---|---|
| Profit during the year | 80000 | |
| Less: | Profit on sale of Plant | -30000 |
| Add: | Interest Paid | 20000 |
| Add: | Transferred to reserve | 100000 |
| Add: | Provision for Tax | 160000 |
| Add: | Dividend Paid | 200000 |
| 530000 |
| Plant & Machinery | |||
|---|---|---|---|
| Particulars | Amount | Particulars | Amount |
| To Balance b/d | 1000000 | By Bank | 70000 |
| To Profit on Sale | 30000 | By Depreciation | 250000 |
| To Bank (bf) | 690000 | By balance c/d | 1400000 |
| 1720000 | 1720000 | ||
| Prov. For Tax A/c | |||
|---|---|---|---|
| Particulars | Amount | Particulars | Amount |
| To Bank A/c | 100000 | By Balance b/d | 140000 |
| To Balance c/d | 200000 | By P&L A/c (bf) | 160000 |
| 300000 | 300000 | ||
Regards
