Cash Flow Statements

Cash Flow Statement 1. From the following information determine cash flow from operationg activities by applying the direct method Profit and loss account for the year ended 31ss March 2010 To cost of goods sold 70000 By sales 120000 To balance c/d(gross profit) 50000 120000 120000 To salaries 10000 By Balance b/d 50000 To insurance premium 5000 To depreciation 15000 To Net Profit 20000 50000 50000 Additional Information 1st April 2009 31st March 2010 Debtors 10000 14000 Bills receivable 5000 3000 Creditors 7000 5000 Stock 12000 17000 Salaries O/s 1000 1500 Prepaid insurance 1000 1000 2. The following are summarized balance sheet of Amco on December 31, 2009 and 2010 Liabilities 2009 2010 Assets 2009 2010 Share capital 200000 250000 Land and bldg 200000 190000 General Reserve 50000 60000 Machinery 150000 169000 Profit and loss 30500 30600 Stock 100000 74000 Bank Loan LTB 70000 ---------Sundry debtors 80000 64200 Provision for Tax 30000 35000 Cash 500 600 Creditors 150000 135200 Bank ------8000 Goodwill ------5000 530500 510800 530500 510800 Additional Information During the year ended dec 2010 a. Dividend of Rs.23000 was paid b. Assets of another company were purchased for a consideration of Rs.50000 payable in shares. The asset purchased were stock Rs.20000 and machinery Rs.25000 c. Machinery was further purchased Rs.8000 d. Deprecitaion w/off on machinery Rs.12000 e. Income tax paid during the year Rs.33000. f. Loss on sale of machinery was w/off to general reserve. 3. Following are the comparative balance sheet of NOVO co. 2005 Liabilities 2006 2005 Assets` 2006
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Cash Flow Statements

70000 12000 700 20400 103100

Share Capital Debenture Provision for D/D Profit and Loss

74000 6000 800 22400 103200

9000 14900 49200 20000 10000 103100

Cash Trade creditors Stock in Trade Land Goodwill

7800 17700 42700 30000 5000 103200

Additional Information: a. Dividends were paid totaling Rs.3500 b. Land was purchased for Rs.10000. c. Debenture Loan repaid Rs.6000 You are required to cash flow statement. 4. From the following Balance Sheet of M/s Bombay Dyes, Prepare a statement of cash flow. Liabilities 2008 2009 Asset 2008 Share capital 100000 125000 Furniture ------General Reserve 25000 30000 Building 105000 Profit /Loss 15250 15300 Machinery 70000 Term Loan 40000 Stock 40000 Sundry Creditors 70000 67000 Debtors 50000 Proposed Dividend 7500 9500 Prepaid Exp Prov for Tax 7500 8500 Cash 250 265250 255300 265250 Additional Information: a. Depreciation w/off on building 9000 and machinery rs.5000 b. Machinery sold for loss of Rs.1800 c. Income Tax paid Rs.7800.

2009 3000 96000 60000 32000 55000 5000 4300 255300

5. Balance Sheet of Alpha engineering co. Ltd. as on 2007 2008 are shown under: Liabilities 2007 2008 Assets 2007 2008 Creditors 12000 11000 Cash 5000 7500 Provision for Tax 6000 7000 Debtors 15000 14000 Acc. Depreciation 12000 13500 Stock 27500 30000 Capital 50000 50000 Plant 48000 52000 P/L Account 17500 24500 Patents 2000 2500 97500 106000 97500 106000 st The net profit for the year ended on 31 December 2008 amounted Rs.10000 after providing Rs.2000 depreciation and Rs.500 for amortization of patents. Dividends paid during the year amounted to rs.3000. during the year machine with a book value of rs. 1000 and acc depn of rs.500 was sold for Rs.400. the loss was charged to P/L a/c. Prepare Cash flow statement.

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