3. The following information is extracted from Moon Co. Ltd. The following information is extracted from Duga! Cost of goods sold .. {Account payable Inventory ... [Sundry creditors Required: Cash payment to suppliers Cost of goods sold. Bills payable {Sundry creditors .. Inventory neon Discount receive Cash payment to suppliers Require Cash Paid to Employees-and:Other- Operating Expense 4. The following information has been extracted from the books of a company q 2012 a = 8,000 Salaries. = 10,000 Depreciation 5,000 10,009 Prepaid Rent. 6,000 4.000 Outstanding Salaries 4,000 3.000 Required: Cash payment to suppliers TAns: (170 Cash Flow From-Operating-Activities 5. From the following information, calculate net cash flow from operating activities: [Cash collection trom sales and debtors |Cash paid to suppliers a Cash paid to employees and other expenses Interest paid ..... [tax paid Rs.1.5500] The income statement of 'Y' Co. for the year end is as follows. Particulars [Details Re] Sales revenue. Less: Cost of goods sold Gross Proft : Less : Operating and other expenses Salary and wages Manufacturing overhead... ~ eee Otfice and administeat Selling and distribu Interest paid....... fs ~ ; eo Tax paid... - - ~ on Net income /@ (iNcluding ae . oo 0009 ve tincudng deprecation 30 6 ION Expenses - a . 30 0099.47 Cash Flow Statement Required: Cash from operation [Ans: Rs.44,000] 7, The income statement and other data regarding the current assets and current liabilities are as below. Income Statement ‘Amount Rs, | Amount Rs. 3,60,000 2,00,000] |add: Opening Stock... 1'90,000] Less: Closing Stock.. (270,000) 1,20,000 Wages... "40,000 1,60,000] Gross profi 2,00,000 Less : Operating expenses & other Operating expenses (including depreciation Rs, 10,000) 50,000 Interest paid . este tnneetneee 13,000 Tax paid . 37,000] Netincome/Profie 700,000] [Current Assets and Current Liability ‘Opening (Rs) Closing (Rs) [Cash and Bank $0,000] 78,000} [sundry debtors 27,000 17,000] Sundry Creditors, 20,000] 25,009] Inventory . 1,390,000] 2,70,000] Prepaid expenses... 10,000] 12,000} loutstanding expenses. 15,000} 10,000} Required: Cash flow from operating activities TAns: 38,000] Flow From ‘Investing-Activitit A company has supplied the following extracts of balance sheet: f Particular T 069 2070 it and machinery (net) 2,50,000 4,00,000, -and and building 5,00,000 7,00,000 rvesiment 1,00.000 40,000 Additional intormation: De Pretation on plant and machinery charged during the year na hinery costing, Rs.50,000 was sold for Rs.60,000. wired: Cash from investing activities amounted Rs.40,000. A part ofvet for two years of a company. The following is an extract of balance sheet for wo Depreciation on machinery provided 7 was sold at a gain of Rs, 30,000. ™ Required: Cash from investing activities. sting activities, 10. From the following information find out cash flow from investing activities, Land and Building. Furniture wsensn Plant & Machinery Accumulated Depreciation on Plant Net Plant & Machinery... During the year, machinery costing Rs. 40,000 on which accumulated depreciation Was 10; for Rs. 25,000. A part of furniture costing Rs. 10,000 turned scraped which was dispo: sed for Rs 5 sol 5, Ans: 2.0009) CHA inet ete 11, The following information of a company is provided to you: Particulars 2068 250,000} 500009] [Share capital Debenture... Dividend paid during year amounted Rs 25000. Required: Cash from financing activities, [Ans: Rs.3,25 009 12. From the following information, find out the cash flows from financing, activities, Year Last Year Current Year Equity Share Capital.. 7 7 ions vesee seveeennessnesen 3,00,000 5,00,000 Pref. Share Capital 2,00,000 Deventure..... 20,000 [Dividend Paid .... Additional information: Debentures were redeemed at 10% discount [Ans: 72,001) | 15, From the following information, find out the net cash flows from financing activities | Year Last Current Yet Common stock 3,00,000 450,000 Preference share capital 1150,000 275,000 Debenture voooeo ; Retained earning 50,000 30,000 | Net profit forthe year Rs 60500, Debentures were redeemed at 10% premium, P] tans 38| | | saat i [sales, net of return... Jopening stock purchase ~~ provision for taxation. lproposed dividend... ‘otal operating expenses. premium on debenture redemption, Balance Sheet of Company for Year 3 and dont 00 ‘he Income Statement and Balance Sheets of a Company have been given below: Income Statement for Ending Year 4 Rs. Rs. 80,000] 4,00,000) (1,20,000) 3,20,000| 10) 1,68,000} 8,000} 48,000] 40,000} Required: Statement cash flows showing cash flows from (a) Operating activities (c) Financial activities, and ee Year3 | Year4 Year3 Liabilities 7 aaa ner = [share capital. 6,40,000] 8,00,000]Ptant & machinery. 840,000] 10,88,000] 10% Debenture.. 1,60,000} 80,000) Inventory . 80,000] 1,20,000] Bank loan : 80,000] 2,40,000|Account receivable... 1,20,000] 1,60,000] count payable. 80,000] 80,000/repaid insurance.... 8,000] 16,000} Wages accrued, ~| 16,000|cash at bank 72,000] 24,000] Provision for tax 40,000] 48,000] Proposed dividend 40,000] 48,000 Retained profit 80,000} _ 96,000] 11,20,00]_14,08,000) 11,20,000| 14,08,000| (b) Investing activities, (d) Closing cash bal [Ans: CFOA Rs.64,000; CFIA (Rs. 15, You are provided following information Depreciation expense Decrease in inventory Increase in accounts payable .. Purchase of plant and equipment Cash at Bank at beginning Increase in accounts receivable, Dividends paid to shareholders Net income Issuance of common share for cash Retirement of debentures Required: Cash Flow Statement so RS.1, [Ans: CFOA Rs.2,72,000; CFIA (Rs. lance. 3,12,000); CFFA Rs.2,00,000] 10,000, 20,000 12,000 4,00,000 20,000 .-. 40,000. 00,000); CFFA Rs.2,70,000]16. ots of a company are give! The income statement and comparative balance sheets of a company are gi Income statement as on December 2009 Particulars n below. Rs. Sales Revenue e Less: Direct and indirect material Wages & Salaries. Otfice expenses. Interest expenses 3,50,000) 90.000] 30,000] 10.000) 20,000 Depreciation . JAdd: Other incomes: Gain on sale of machine book value Rs. 50,000, 40,000 10,009] Interest incomes. Net Income before Tax. Balance sheet [ Liabilities Last year] Current year] Assets Last Year | Current Year [Share capital 4,00,000] _,00.000)F med Assets 3,00,000[ _5,00,063 BONDS wenn 4,00,000 50,000] Investments. 1,00,000] —2.50,00¢| [Sundry creditors... 1,50,000] _2,00,000].als receivable 1,50,000| 1.20 004] ois office expenses... 30,009} 45,000|Stock of Supplies 1,10,000] 1.80 006] Reserve & Surplus. 1,80,000|_3,00,000|Cash in hand 2,00,000 35,000] Discount on Share Issued : 10,000 860,000] 10.98,000) 860,000] 10,95,009] Additional information: a. Fixed assets purchased during the year Rs.2,70,000. b. Dividend paid for current year Rs 90,000 Required: a. Cash flow from operating activities b. Cash flow from investing activities Cash flow from financing activities [Aus: Operating Rs.2,15,000; Investing Rs. (3,30,000); Financing Rs, (50,000)] 17. The income statement of Moon Co. is as under, Particulars Details Rs] Amount Rs] Cash and credit sales. 6 00,000] Less : Cost of goods sold. Opening stock 42,000 Purchases, 2,50,009| Direct wages. 1,50,000} Closing stock (55,000) 3,87,000] Gross profit . 2,193,000 Less : Operating expenses: Office expenses. . 60,000 Depreciation 40,000 41,00,000) Net income before tax [| _4, 43,000] Less: Tax paid . = 40,009 Net income after tax 73,009 Less: Dividend paid 43,000] Retained earning 30,0098 Yearl | Yeartl 2,40,000} 33,000}in 1,50,000] _3,00,000|in 15.000] 30,000] Balance sheets of M Co, for two years $.30,000/Plant and machinery 1.95.00] 2,25,000|Bills receivable 1.35,000] 2,25,000|Cash at bank. are as under: Ass Yeart = 351,000] 6,217,000} 66,000] 1,090,000) 75,000} 87,000) 42,000] 55,000} 2,01,000] —2,80,000} Wvestment, ventory 7,35,000] 47,43,000] flow statement showing: cred Cash ae fea a. Cash form operating b. Cash from investing and c. Cash from financing activities, 7,356,000] TAns: (a) Rs.1,93,000 (b) (Rs.3,44,000) (C)RS.2,30,000] following comparative balance sheet of a company is provided to you: Balance sheet jo — ies 2017 2012 Assets 1,50,000] 2,60,000} 15,000} 15,000 50,000] 75,000} 20,000] 15,000) 1,05,000] —1,35,000| 80,000] - Plant & machine. Investment... Sundry debtors. inventories. Cash 420,000] §,00,000 Ganional information: i ales for the year 7 st of goods sold b oot expenses: Office and administrative Selling and distribution Depreciation on plant 4, Premium on redemption of debenture e._ Loss on sale of plant (Book Value Rs. 40,000) {Dividend paid Required: Cash flow statement showing: a. Cash from operating activities b. h from financing activities and Cash from investing activities. Avompany has provided the following income statement and balance sheet for two year to you: Rs. 4,50,000 Rs. 250,000 expenses Rs. 35,000 expenses Rs. 15,000 Rs. 30,000 Rs, 8,000 Rs. 10,000 Rs. 72,000 TAns: (a) Rs.2,05,000( b) (Rs.1,45,000) (c) (Rs.50,000)] Net sales less : Cost of goods sold Gross profit. less: operating expenses: Depreciation on plant Depreciation on building Operating expenses Net income from operation. ‘Add gain on sale of investment #5 loss on sale of machinery (proceeds were Rs. 9,000). Netincome20. Balance sheets of X Co. for two years are as under This Year Assets Last year Liabilities Last year Equity Share capital 2,40,000 [Share premium... -| Reserve and surpluses.. 1,985,000] Bank loan ssn] 1,50,000] ISundry creditors 1,35,000] Outstanding expenses. 15,000 3,30,000|Land and building .. 33,000|Plant and machinery... 2,01,600| Investment... 3,00,000]Bills receivable. 2,25,000| Inventory 1,41,009] 2,10,000 66,000] 75,000) 42,000) 2,01,000] 30,000|Cash at bank... 35,000} 11,19,600) Required: Cash flow statement showing: a. Cash available from operating activities b. Cash available from investing activities c. Cash available from financing activities d. Net cash increase 7,35,000) [Ans: (a) Rs.1,75,800 (b) (Rs.3,79,800) () Rs.2,55,600 (d) Rs, 51,609) (Hint: Dividend paid Rs.17,499) The income statement and balance sheet of X Co. have been given below. Particulars Details Rs. Net sales.. Less : Cost of goods sold Purchases |Add: Opening stock 4,00,000) 2,00,000} 2,50,000| Less: Closing stock. Gross profit Less : Operating expresses (including depreciation Rs. 60,000, interest on debenture 20,000)... a Loss on sale of fixed assets (Cost 1,00,000 and accumulated depreciation 40,000)... Provision for taxation. Provision for dividend [Net income Balance sheets of X Co. for the year 2012 and 2013 Required: (Direct and indirect method) a. Cash available from operating activities b. Cash available from investing activities cc. Cash available from financing activities d. Net cash increase [Ans: (a) Rs. 3,40,000 (b) (Rs. Liabilities 2012 2013 Assets 2012 2013 fEquity share capital 7,00,000] 9,00,000]Land and building 4,00,000| 110% debenture 2,00,000| 1,50,000|Piant and machinery... 550,000] Bank loan... 2,00,000] 3,50,000|Inventory 200,000} JAccumulated dep. 1,20,000} 1,40,000]Bills receivable... 50,000] JAccount payable waren 80,000] 1,00,000] Investment... 4,00,000) Provision for tax. 40,000] 60,000|Cash at bank.... 90,000 Provision for dividend 50,000] 60,000 Retained earring...... 3,00,000] _ 5.40.00] 16,30.000] 23,00.009] 6.20,000| 23,00,000 60,000) (¢) Rs.2,30,000 (d) Rs. 10,000!come statement and the balance sheets of a comy pany have been provided below. » Faticulars Details Rs. Amount Rs.| oe 8,20,000} ae 20,000} 8,00,000} Le Cost of goods sold : seginning inventory a ages Pad. 2,40,000] Sora mr 70,000} emeres (50,000)| 3,20,000} {Gross margin. 220909 ges operating expenses: | operating expenses (excluding depreciation) Foye Depreciation on fixed assets 190.009 Provision for taxation... : 4000 Premium on redemption of debenture, 2,200 nae Net operating INCOME wa... essual 1d: Profit on sale of machine(book value 30,000) . a oaa peo 1,45,000) Rerchanges in b 1,50,000] Increase| 10,000 Increase 50,000} Decrease| 1,90,000] No change 10,000 Decrease| snare premium oebenture... [ats payable .. [provision for taxation profit and loss. Fixed assets (net) laccount receivable Icash at bank... . " Required: (Direct and indirect method) Sean Haw Ratement shoving cash fom; opecating, investing and Srancing activision IAns: Rs. 2,20,000, (Rs. 3,20,000), Rs. 5,000] The balance sheets and the income statements of a company have been given below: [ Liabilities Year! | Yearll Assets Year! Share capital ; 4,00,000] "5,00,000]Land and building... 1,00,000] ISnare premium, = 20,000] —_2,000Plant and machinery(net) 2,50,000 10% debenture | 1,00,000] 50,000]investment at cost 1,00,000 Bank overdraft +] 20.000] inventories. 1.00,000 \CCOURS PAYADIE vase 80,000] —_50,000|Prepaid expenses 4,000 Pustanding expenses............ 10,000] 5,000/Accounts receivable.............| 96.000 Provision for taxation... 30,000] 40,000|Cash at bank 30,000 Profit and loss... 40,000] 40,000} 680,000] _7,30,000] 6,80,000) Income Statement Year Particulars Amount Rs. Saks revenue #38 Cost of gooas sold js ae oe 8 Enging inventory (30.000) of goods soldGross MAMQIN .osseseseee Less : Operating expenses (including depreciation Rs. 30,000 and interest Rs. 10,000). Debenture premium.. Provision for taxation... Total operating expenses Net income before other income ...... |Add: Gain on sale of plant (cost Rs. 30,000 accumulated depreciation Rs. 10,000) [Total net income .. ssssonses sssesssaass Required: Cash flow statement showing ne activities [Ans: CFOA Rs.1,25,000; CFIA (Rs.1,10,000); CFFA Rs.5,000) {cash available from operating, investing and financing 23, The comparative Balance Sheets, 2011 Income Statement and additional information of Goog Products Corporation have been given below: ‘Comparative Balance Sheets December 31 2011 2010 | 25,000] 33,009 171,000] 180,009] 307,000] 298,000) 336,000] 280,009] 1628,000] 1430,000] (653,000)| (618,009) 4814,000| 170,000 163,000[ 160,000] 99,000} 110,009 500,000] 500,000) (66,000)} (70,000) Cash [Account receivable... Building and equipments... Accumulated depreciation JAccount payable Jcustomer advance deposits Bonds payable. Discount on bonds payable Deferred income tax payable... oe oe 7 100,000 94, Common stock. Sen 850,000] 800,000) 168,000] 76,000} Retained earning: 1814,000] _1670,000) 2011 Income Statement a] RS Sales revenues. 30,3000) Cost of goods sold. (25,26 625] Depreciation expenses (1,58,000) [Sales commission (all cash). (24,000] Interest expenses (44,000) JGain on sales of equipmert... 17,009 284.37 Income tax expenses. 7 (102,378 Net income| 182,009 Additional information: 1. Equipment with a cost of Rs 63,000 and a book value of Rs 40,000 was sold for Rs.57,000. 2. Cash dividend of 90,000 was paid in 2011. Required: Cash flow statement [Ans: CFOA Rs.3,22,000; CFIA (Rs.2,90,000); CFFA (Rs.40,00011Cash Flow Statement 9.55 -e income statement and the balance sheet of a com ‘pany Particulars. pneveterl Ge ‘Amount Rs. | Amount Rs. led below. Sales (net) oss Cost of goods sold. eginning inventory... Purchases... ess: Ending inventory Wages paid... ,00,000} Total cost of goods sold..... Gross margin... ese Operating expenses Operating expenses (excluding depreciation Depreciation on plant. Provision for taxation... Premium on redemption of debenture.. Total operating expenses .. 1,00,000) 2,00,000) (80,000) 2,20,000] 80,000) '3,00,000] 2,00,000] 50,000} 40,000 50,000} 5,000} Net operating income . 1d: Proft on sale of machine (book value Rs. 25,000) Net income Net changes in balance sheet items during the year wei 15,000 70,000} ‘Amount Rs. | Changes Share capital. Ishare premium Joebenture...... unts payable... Provision for taxation .. Required: 200,000] 20,000 50,000 10,000} 20,000] 2,00,000| 20,000] 40,000] 20,000} Decrease] Cash flow statement showing cash from operating, financing and investing activities [Ans: CFOA Rs.90,00% ‘5. The balance sheet of a company for 2010 is given below. Liabilities: 2009 2010 ‘Assets FIA (Rs.2,25,000); CFFA Rs.1,15,000] 2009 70,00,000] 15,00,000/Plant and machinery... 1,00,000] — 1,50,000]Investment 1,00,000| 2,00,000] inventories... 4,00,000] 80,000|Account receivable 10,000] 20,000|Prepaid expenses...... 80,000} 60,000|Cash at bank..... 1,10,000| _1.90,000} 75,00,000| 22,00,000) 7,70,000| 3,00,000| —2,00,000] 1,50,000] 2,00,000} 2,00,000] 1,50,000} 30,000] 10,000] 50,000] —1,00,000} 15,00,000| 22,00,000}26. Income statement for 2010 ‘Amount Rs] oe Less : Cost of goods sold Beginning inventory JAdd: Purchase.......... Less : Ending inventory Wages .. Total cost of goods sold, Gross margin ce Less: Operating expenses: ‘Operating expenses other than depreciation... Depreciation on plant and machinery «0. Loss on sale of plant (book value 60,000) Provision for taxation Total - Net INCOME wenn |Add : Profit on sale of investment... Total net income J = itatement of sources and appl a. Cash available from operating activities b. Cash available from investing activities c. Cash available from financing activities d. Ending balance of cash and cash equivalent ication of cash showing (2,00,000) 150,000] 5,00,000 [Ans: (a) Rs.2,10,000 (b) (Rs.7,10,000) (c) Rs.5,50,000 (4) Rs.1,00,009) ‘The financial statement of a Ltd. Company has been presented below. Balance Sheets of Ltd. Company [ Liabilities Yeart_| Yearil Assets, Year! | Yeart Equity share of Rs. 100 each......| 1,00,000| 2,00,000|Land and building... 80,000) —1,20,00] Share premium. 10,000} 20,000|Ptant and machinery 4,00,000| 1.60.00 10% debenture 50,000] 20,000|Depreciation on plant. (30,000)] 40,000] JAccounts payable... 40,000] 60,000|investmert... 40,000] 50,000 Provision for taxation 20.000] 30,000]tnventories .... 20,000] 50,coq Provision for dividend 10,000] 20,000)Accounts receivable. 30,000] 40,oee Profit and loss account 20,000] _50,000|Cash at bank 10,000] 20,000 2,560,000] 400,000 2,50,000| _4,00,00 Income Statement for Year IL Particulars ‘Amount Rs. | Amount Rs. Sales Cost of goods sold. Beginning inventory. Purchases Ending inventory nv. Wages paid Total cost of goods sold .. Gross margin...... Operating expenses: Office expenses. Interest on debenture Less 20,000) 80,000 (50,000) 2,00,000) 50,009 30,009 20,000) +,20,000] 30,009 5.00eCash Flow Statement 9.57 pepreciation sstetatatetenee redemption of debenture (premium). provision for taxation provision for dividend otal operating expenses. Net income before other income ‘add interest from investment... Add proft on sale of plant (cost 20,000 accumulate depreciation 1 et profit nnn Sia .000).. otal quired: Cash flow statement show e a. Operating activities b. Investing activities ng cash from c. Financing activities fans: (a) Rs.55,000 (b) (Rs.1,12,000) (e) Rs.67,000) gollowing are the Balance Sheets of a company fp. : 2069 2070 Tas sare Capital 5.00,000] “7,00 ,000] Fixed Assets 4.01 [snare Premium. 50,000] 70,000|Investment.... occas] sooo 0% Debenture.. $:00.000/ 2,00,000}Bills Receivable... | 3°00 000} 1:00.00] sundry creditors 1,00,000]70,000|S$toCK wane | 1.00.00] 1'50,000] Bis Payable... 7 50,000} 50,000|Cash in hand... 1,50,000| 2'c0'000 |Retained Earning...... 50,000] _1,10,000 ~~ a : 10,50,000] 72,00,000] 70,50,000 ‘Additional Information: ‘a. Sales for 2070 Rs.10,00,000, b. Cost of goods sold Rs.6,60,000. Operating expenses Rs.1,55,000 [excluding depreciation Rs.75,000], 4. Part of fixed assets sold for Rs.75,000. ¢. Fixed assets purchased worth Rs.3,50,000. f. Dividend paid Rs.40,000. 8 Debentures were redeemed at 10% premium. Required: a. Cash flow from operating activities b. Cash flow from investing activities ©. Cash flow from financing activities a. Net change in cash. [Ans: Operating Rs.2,05,000, Investing Rs. (2,25,000), Financing Rs.70,000] % trading company has supplied the following comparative balance sheet to you: Balance sheet Liabilities 2011 | _2012 Assets, 201% Share capital ~ cw 11,00,000] 13,20,000]Fixed Assets. oo 12,00,000} Sentures 2.00.00] 1,00,000] inventories... { 1,00,000 1,00,000] _80.000|Sundry debtors... 3,00,009} 2.00.00] 3.00,000{CASH orn - 2,00,009] 2.00.00} _3.00,009) “+ ~7a,00,000} 21,00,000) 78,00,000| 27,00,000] Additional information: “Sales for the year Rs.12,00,000 —29. 30. b) Cost of goods sold Rs.7,00,000 ©) Operating expenses Rs.2,00,000 Fixed assets costing Rs40,000 have been sold for Rs.60,000 ©) Fixed assets purchased Rs.6,00,000 Dividend paid Rs.60,000, Required: Cash Flow Statement showing, cash from operating, investing and financing, activit B ACLiVities TAns: COA Rs 3,80,000; CIA Rs. (40,000), CFA Rs.60, / 560,044 Consider the following, openii " and closing, balance from the balance sheet of P Ltd Sundry debtors / Book debi. Bills receivable... Sundry creditors Bils payable Inventories. cash & bank 7 Joutstanding office expenses Other information: a. Sales during the year, Rs.5,70,000. b. Cost of goods sold Rs.2,50,000. ¢. Operating expenses Rs.70,000 (only cash). a Furniture costing Rs.50,000, on which accumulated depreciation was Rs.20,000, was sold ats profit of Rs.12,000. Investment was made for Rs.2,50,000 Issue of share capital Rs.2,20,000 including share premium of Rs.20,000. e f & Debentures Rs.1,80,000 were redeemed at premium of Rs.18,000. h. Tax paid Rs.20,000. i, Dividend paid Rs.50,000. Required: a. Cash flow from operating activities b. Cash flow from investing activities ¢. Cash flow from financing activities d. Cash equivalent & Cash position [Ans: a. Rs.2,90,000, b. Rs (2,08,000), c. Rs (28,000)) The balance sheet of a company for 2069 and 2070 are given below Liabilities 2089 2070 Assets 2068 [Share capital. “| 2,00,000] _ 3,50,000|Machinery..... - 150,009] iShare premium. | 10,000 91,000] investment. 50,000} 10% debenture .. 50,000} 25,000|Stock 40,000] Bills payable 65,000 30,000]Sundry debtors... 80,000} lAccrued wages. 5,000] 7,000|Prepaid exp. 15,000] Provision for taxation.. 5,000) 7,000|Cash at bank 20,000} PIL AVC..... 20,000} 40,000} 3,55,000| _5,50,000 3,855,000] Income statement for the year 2070 Particulars: Amount Rs. 6,000 Details RS. Nat SICS rere Less: Cost of goods sold Opening stock... Add: Purchases Less closing stock... 40,000] 3,00,000] (60,000)| 2,80,004 —31. Gross proft... ; - ess: Operating expenses ys operating expenses other than Depreciation on machinery... Presiation.., Loss on sale of machinery (book y Provision for taxation... Pook va Total operating expenses . Net income before other income |,gd profit on sale of investment... Discount on redemption of dat ‘otal net INCOME... on Required: Cash flow statement showing” ee = from operating 7 Viti . Cash from inve: ities E Vesting activities ive 60,6005 f debenture Cash available from financing activit tivities, se financial statement of Big Co. Ltd, has be TAns: (Rs, 26,000), (Rs. 1,55,000), Rs. 2,01,0001 Liabilities Tass "en presented below. 2070 lsrare capil 208 — Share premium "00.000) "2,00, 006) and ana buiing ccount payable ’ Depreciation On plant. ss 40,000] 60.000investment provision for taxation Provision for dividend. profit and loss account... 20,000} 30,000|Inventories ween 10,000] 20,000|Account receivables 20,000} _50,000|Cash at bank... 2,50,000] 4,00,000] Income statement for the year 2070 SAIS ene Less : Cost of goods sold : Opening stock.. Jadd : Purchases Less: Closing stock Wages paid. ; Total cost of goods sold Gross margin Less : Operating expenses Office expenses.. Interest on debenture .. Depreciation ... 7 Premium on redemption of debenture Provision for taxation a Provision for dividend .. Total operating expenses. Net income before other income .... JAdd : interest from investment ..---~ lAdd: Profit on sale of plant(Cost Rs.20,00 net income, 80,000] (60,000) id accumvlated depreciation RS. 10,000)... ies able from operating ac ble from investing activities from financing activities Requireda, Cash avail: b, Cash availa cc. Cash available d. Net cash changes 41,12,000) (c) Rs, 67,000 (d) Rs, 10,000] [Ans: (a) Rs. 55,000 (0) (Rs,Gross profit. ‘Operating expenses operating expenses other than , Depreciation on machinery... PYecation Loss on sale of machinery (book yahoo Provision for taxation... Valve 60,000). Total operating expenseg 7 nn Net income before other income 16: profit on sale of investment, Pot ci on redarmton a cbc otal net income. re ess b an fom ‘operating activities . Cash from investi : c ‘esting activities Cash available from financing activit ies Cash Flow Statement 9.59 TAns: (Rs. 26,000), (Rs. 1,55,000), Rs. 2,01,000] ‘The financial statement of Big Co. Ltd, has been presented b resented below. Total net income Required a, Cash avail b.. Cash available from investing activ from financing activities ble from operating activities vities ¢. Cash available d. Net cash changes [Ans: (a) Rs, 55,000 (b) (RS, 1 12,000) (c) Rss, 67,000 Liabilities 5 ~ share capital 1,00,000] 2, or Assets 2069 2070 [snare premium. 10,000] so200|Land and building... 0,000] _ 1,20,000} 0% debenture... Sovo09| 22:000]Plant and machine 4,00,000] 1,60,000 laccount payable 40.000] '0,000| Depreciation On plant. (30,000)] (40, 000)! provision for taxation. Bal £0.000}investment.. 40,000| 50,000 provision for dividend so ooo 320:000}taventories 20,000] 50,000] ee eae acount 10,000] 20,000|Account receivables .. 30,000! 40,000] Profi 20,000] _0,000|Cash at bank ...... 40.000] _20,000 250,000] _4,00.000] 2,50,000] _4,00,000] Income statement for the year 2070 Saleen = ‘Amount Rs, Less : Cost of goods sold ae 2.00.00 Opening stock... no aoe Jadd : Purchases... aes Eacor Less: Closing stock Wages paid... 30,000 Total cost of goods sold. 20,000 Gross margin 720.000) Less : Operating expenses Office expenses. 30,000] Interest on debenture 5,000] Depreciation .....cseeesnenes 20,000 Premium on redemption of debenture 3,000] Provision for taxation..... 30,000) Provision for dividend 20,000) Total operating expenses |__1,00.000) Net income before other income 12.0 | Jagd interest trom investment .-.-- sesennnnennnnei see 10,000) hod. Pratt on sale of plant(Cost Rs.20,000 accumulated depreciation RS.10 (000)... f 00 (d) Rs, 10,000]32. following comparative batance sneet {0 you; Balance sheet A trading company has supplied the Liabilities 2011 iz] Assets. Share capital 70,00,000} 14,00,000|Plant ‘and Equipment! Share premium. 400.000] 120,000|Stock 100,000] ount receivables. 200,000] 300,000|Cash .. 200,000] 300,000/Bills: receivables 200,000) 18,00,000| Additional information: a) Sales for the year Rs 10,00,000 b) Cost of goods sold Rs.700,000 | c) Operating expenses Rs.160,000 including depreciation on plant and equipment Rs.300,009 d) A plant costing Rs.40,000 has been sold for Rs.60,000 e) _ Plant purchased Rs.470,000 f) Dividend paid Rs.40,000. g) Debentures were redeemed at a premium of Rs.20,000. Required: Cash flow statement [Ans: COA Rs 250,000 CIA Rs (4,10,000) CFAR Rs.2,)