a 55 Illustration 11. XYZ Ltd. Company's Comparative Balance Sheet for June 2010 and June 2009 and the Company's Income Statement for the year June 30, 2010 are as follows: XYZ Ltd. Comparative Balance Sheet June 2010 and June 2009 (Rs. in crores) 2010 2009 Sources of funds: Shareholder's funds 140 140 Share Capital 110 250 92 232 Loan funds 135 40 385 272 Application of funds Fixed Assets 2010 2009 430 (218) 212 309 (194) 115 75 60 160 Plant and Equipment Less : Accumulated depreciation Investments Current Assets Inventory Accounts receivable Pre-paid expenses Cash LAS Less: Current liabilities and provisions Accounts payable Accrued liabilities Deferred income tax provision 205 180 17 270 20 26 428 10 460 310 230 70 60 15 315 378 113 82 385 272 XYZ Ltd. Income Statement For the year ended June 30, 2010 (Rs. in crores) Sales 1,000 Less: Cost of goods sold 530 Gross margin 470 Less: Operating expenses 352 Net operating income 118 Non-operating items: Loss on sale of equipment (4) Income before taxes 114 Less : Income-taxes : 48 Net income Additional information: (i) Dividends of Rs.48 crores were paid in 2010. (ii) The loss on sale of equipment of Rs.4 crore reflects a transaction in which equipment with an original cost of Rs.12 crore and accumulated depreciation of Rs.5 crore were sold for Rs.3 crore in cash Required: Using the indirect method, determine the net cash provided by operating activities for 2010 and construct a statement of cash flows. 1247898981 66