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Cash Flow Statement Question

Question 6: The balance sheet shows an increase in assets like land, buildings, plant, equipment and inventory from 2075 to 2076. Liabilities like share capital and current liabilities increased while debentures decreased. Retained earnings increased indicating profit. Question 7: The income statement shows a gross profit and net profit. The balance sheet shows increases in share capital, retained earnings and assets like plant and inventory, while debentures and overdraft decreased. Question 9: The income statement shows a net profit. The balance sheet shows increases in share capital, share premium, retained earnings, assets like land, buildings, investments and debtors

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3K views5 pages

Cash Flow Statement Question

Question 6: The balance sheet shows an increase in assets like land, buildings, plant, equipment and inventory from 2075 to 2076. Liabilities like share capital and current liabilities increased while debentures decreased. Retained earnings increased indicating profit. Question 7: The income statement shows a gross profit and net profit. The balance sheet shows increases in share capital, retained earnings and assets like plant and inventory, while debentures and overdraft decreased. Question 9: The income statement shows a net profit. The balance sheet shows increases in share capital, share premium, retained earnings, assets like land, buildings, investments and debtors

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satya
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[Q. No.

6] The balance sheet of a company are as follows:


Liabilities 2075 2076 Assets 2075 2076
Share capital 4,00,000 6,30,000 Land and building 3,60,000 4,25,000
8% Debenture 3,00,000 1,50,000 Plant and equipment 2,70,000 3,70,000
Current liabilities 80,000 1,12,400 Inventory 90,000 60,000
Profit and loss a/c 30,000 77,600 Book debt 35,000 45,000
Cash at bank 55,000 70,000
8,10,000 9,70,000 8,10,000 9,70,000

The income statement of 2076 is as follows:


Particulars Amount Amount
Sales 6,00,000
Less: Cost of goods sold:
Op. inventory 90,000
Purchase of material 1,60,000
Cl. inventory (60,000)
1,90,000
Wages 3,10,000
1,20,000
Gross profit
Less: Operating expenses 2,90,000
Depreciation 90,000
30,000 1,20,000
1,70,000
Less: Interest on debenture 24,000
1,46,000
Less: Tax 58,400
87,600
Less: Dividend 40,000
Retained earnings 47,600
Required: Cash Flow Statement
[Q. No. 7] The following are the income statement and balance sheet at the end of 2076:
Particulars Amount Amount
Sales 4,50,000
Less: Cost of goods sold 2,00,000
Gross margin 2,50,000
Less: Salary 60,000
Rent 30,000
Operating expenses 20,000
Interest on debenture 10,000
Depreciation 30,000
Loss on sales of plant (Book value Rs. 20,000) 5,000 1,55,000

Net profit before tax 95,000

Balance Sheet
Liabilities 2075 2076 Assets 2075 2076
Share capital 2,00,000 3,00,000 Plant 2,00,000 2,50,000
Retained earnings 40,000 50,000 Investment 1,00,000 1,00,000
10% Debenture 1,00,000 50,000 Debtors 40,000 50,000
Creditors 20,000 30,000 Stock 30,000 25,000
Bank overdraft 40,000 20,000 Cash 30,000 25,000
4,00,000 4,50,000 4,00,000 4,50,000
Required: Cash flow statement
[Q. No. 9] Following are the financial statements of a company:
Balance Sheet
Liabilities Last Year Current Year Assets Last Year Current Year
Share capital 1,50,000 3,00,000 Land & Building 1,20,000 1,80,000
Share Premium 15,000 30,000 Plant at cost 1,50,000 2,40,000
6% Debenture 75,000 30,000 Depreciation on plant (45,000) (60,000)
Sundry creditors 60,000 90,000 Investment 60,000 75,000
Retained earnings 30,000 75,000 Sundry debtors 45,000 60,000
Prov. For dividend 15,000 30,000 Inventories 30,000 75,000
Prov. For tax 30,000 45,000 Cash at bank 15,000 30,000
3,75,000 6,00,000 3,75,000 6,00,000

Income Statement for the current year


Particulars Amount Amount
Sales 3,00,000
Less: Cost of goods sold:
Op. inventory 30,000
Purchase of material 1,20,000
Cl. inventory (75,000)

75,000
Wages 45,000 1,20,000
Gross profit 1,80,000
Less: Operating expenses:
Office expenses 45,000
Depreciation 30,000
Debenture premium 4,500
Interest on debenture 7,500
Provision for tax 45,000
Provision for dividend 30,000 1,62,000
18,000

Add: Gain on sale of plant


(Cost Rs. 30,000 – Accumulated
depreciation Rs. 15,000) 12,000

Add : Interest on investment 15,000

Retained earnings 45,000


Required: Cash Flow Statement
[Q. No. 11] The income statement and balance sheet of A. Ltd. company has been given below:
Particulars Amount Amount
Sales 12,00,000
Less: Cost of goods sold:
Purchase 5,00,000
Add: Beginning inventory 1,00,000
Less: Ending inventory (1,50,000) 4,50,000
Wages 4,00,000
Total cost of goods purchased 8,50,000
Gross margin 3,50,000

Less:
- Operating expenses (including depreciation Rs.
80,000 , interest on debenture Rs. 20,000 and
insurance premium) 2,00,000
- Premium on redemption of debenture 10,000
- Loss on sales of fixed assets (Cost Rs. 80,000
accumulated depreciation Rs. 40,000) 10,000
- Provision for taxation 60,000
- Provision for dividend 50,000
Total operating expenses 3,30,000
Net income 20,000

Balance Sheet of A. Ltd. Company for year one and year two
Liabilities Year One Year Two Assets Year One Year Two
Eq. Share capital 8,00,000 10,00,000 Land & building 5,00,000 7,00,000
10% Debenture 2,00,000 1,00,000 Plant and machinery 6,50,000 8,00,000
Bank loan 1,00,000 3,00,000 Inventory 1,00,000 1,50,000
Accumulated Depreciation 1,00,000 1,40,000 A/C receivable 1,50,000 2,00,000
A/C payable 1,00,000 1,00,000 Prepaid insurance 10,000 20,000
Wages accrued - 20,000 Cash at bank 90,000 30,000
Provision for taxation 50,000 60,000
Provision for dividend 50,000 60,000
Retained earnings 1,00,000 1,20,000

15,00,000 19,00,000 15,00,000 19,00,000


Required: Cash Flow Statement

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