Kids n caboodle clothing Enterprises had following receipts and payments for it's first year of operations Receipts

Cash sales 155,000 Loan proceeds 21,000 total receipts 176,000 Payments/disbursements Merchndise purchase (all sold this year) 84,000 wages 33,000 rent and lease payments 22,000 other operating expenses 7,900 Purchse equipments 10,500 total payments/disbursement 157,400 Increase in cash balance 18,600 there was no a/c receivables, emplyee had earned wages of 200 yet to be paid. Store had not paid utilities bill of 150. Prepare a cash flow statement for the year satement of Cash Flow of Kids n Caboodle Cash Flow from operating activities cash receipts from sale of goods payment to suppliess payment of wages payment of rent and lease payment of other operaing exp Cashflow from investing activities purhcase of equipments Cash flow from financing activities loan proceeds

8,100 155,000 84,000 33,000 22,000 7,900 10,500 18,600 21,000 18,600

146,900 10,500

Since company follow all cash basis transactions a/c payables and receiables are not considered

of operations

ot paid utilities bill of 150.

Balance Sheet as on 31st Dec year 1 Year 2 net change during the year Assets increase decrease Cash 10,000 15,000 5,000 receivables 20,000 25,000 5,000 inventory 20,000 35,000 15,000 Plant & machinery cost 85,000 85,000 0 less dep -15,000 -10,000 5000 Total Assets 120,000 150,000 Liabiliites & capital sundry Creditors Outstanding expenses debenture payable long term loans capital Retained earnings

8000 7000 10,000 5000 50,000 40,000 120000

10,000 10,000 5000 25000 50,000 50,000 150,000

2,000 3,000 5000 20000 0 10000

Net profit for the period after charging rs.5000 on account of dep was rs. 20,000. A piece of equipment costing Rs.25000 on in the amount of Rs.10,000.00 was sold for Rs.10,000. dividends paid during the year amounted to Rs.10,000.00 show the sources and uses of funds nd change in working capital: cost of Mac 25,000 dep 10,000 soures of funds book value 15,000 operations 30,000 sold 10,000 Net income 20,000 loss 5,000 add loss on sale of machinery 5000 add dep 5000 sale of equpment 10,000 long term loans 20000 Totl source of funds 60,000 Uses of funds equipment repayment of debentures payment of dividends working capital change Total uses of funds

25000 5000 10,000

40,000 20,000 60,000

Working Capital change current assets Cash receivables inventory Total Current liabilities

year 1 10,000 20,000 20,000 50,000 15,000 25,000 35,000 75,000

year 2

sundry Creditors Outstanding expenses

8000 7000

10,000 10,000 20,000 55,000

tOTaLl 15000 Change in working capital 35,000 Current assets - current liabilities

20,000

quipment costing Rs.25000 on which dep accumlated d to Rs.10,000.00 80 75

Balance sheet cash other current asset equipemnt accumlated dep - equipment land toal assets current LiabILITI long term debt common stock retained earnining Additional information; a.Dividends of 10,000 were paid during the year b.No equipment was sold during the year

2001 12000 25000 108,000 -20,000 30,000 155000 26,000 50,000 50,000 29,000 155,000

2000 Increase/ decrease 15000 -3000 22000 3000 50,000 58000 -16,000 -4000 30,000 0 101000 54000 22,000 25,000 40,000 14,000 101,000 4,000 25,000 10,000 15,000 54,000

source

4000 25000 10000

What was the net cash provided by (used in) financing activities during 2001? What was the net cash provided by(used in) investing activities during 2001/ NET Income = Retained Earning Ending Balance - Retained Earning Beginning Balance+Dividend paid Net Income =29000-14000+10000 25000 INDIRECT METHOD Net income A.Operating Acitivities Decreases Depreciation Inrease in Current Liability Decreases increase in current assets Net Cash Flow from Operating activities B. Investing Activities Incerase Decreases purchase of equipment Net Cash provided from Investing acivities C.Financing Activities Increases Increase in common stock Long Term Debt Decreases Payment of Dividend Net Cash provided from Finncing acivities Net 'cash flow during the year

25000 8000 4000 4000 -3000 -3000 5000 30000

-58000 -58000 -58000 35,000 10,000 25,000 -10,000 -10,000 25,000 A+B+C -3,000

use -3000 -58000 -4000