1,60,000 Cash Flows from Operating Activities: Net profit before taxation and extra-ordinary item Adjustments for: Depreciation Operating profit before working capital changes Increase in debtors Decrease in stock Increase in advances Decrease in creditors Increase in outstanding expenses Cash generated from operation Income tax paid Net Cash from Operating Activities Cash Flows from Investing Activities: Purchase of land Purchase of building and equipments Sale of equipment Net Cash Used in Investing Activities 60.000 2,20,000 (18,000) 1,68,000 (1,200) (6.000) 24.000 3.86.800 (86,800) 3,00,000 (48,000) (2.88,000) 36.000 (3,00,000) |49 84,000 72.000) Cash Flows from Financing Activities: Issue of share capital Dividend paid Net Cash from Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents at the beginning Cash and Cash Equivalents at the end 12.000 12,000 60,000 72.000 Illustration 13 From the following information of XYZ Ltd., for the year ended 31st March, 2013 and 2014, prepare a cash flow statement 31.3.2013 31.3.2014 3.00,000 1,00,000 Equity Share of 20 each Share premium Profit and loss appropriation A/C Profit for the year 6% Debentures Profit on Redemption of Debentures Sundry creditors Provision for taxation Proposed dividend 1,50,000 4,00,000 10,000 1,00,000 2,00,000 1,00,000 2,000 1.10,000 1,00,000 20,000 10,42,000 2.50,000 1,40,000 50,000 15,000 7,55,000 2,00,000 4,00,000 1,40.000 4,50,000 1.50.000 2.60.000 Property Plant and machinery Less: Depreciation Loans to subsidiary Co. Share in subsidiary Co. Stock in trade Debtors Bank 20,000 1,40,000 1,00,000 35.000 7.55.000 3,00,000 15,000 20,000 1,50,000 1.50,000 1.57,000 10.42.000 Additional information: During the year plant costing 50,000 was sold for 10,000. Accumulated depreciation on this plant was 30,000. Loss on sale of plant was charged to Profit & Loss Account. Income tax paid during the year was 60.000