a56 Illustration 12. The following is the income statement XYZ Company for the year 2009-10: (Rs.) Sales Add: Equity In ABC Company's earning 1,62,700 6,000 1,68,700 Rs 89,300 34,400 7,450 500 1,250 900 10,650 2,050 8,150 Expenses Cost of goods sold Salaries Depreciation Insurance Research and development Patent amortisation Interest Bad debts Income tax Current 6,600 Deferred 1,550 Total expenses Net income Additional informations are: (1) 70% of gross revenue from sales were on credit. (ii) Merchandise purchases amounting to Rs. 92,000 were on credit. Salaries payable totaled Rs. 1,600 at the end of the year. (iv) Amortisation of premium on bonds payable was Rs. 1,350, (v) No dividends were received from the other company. (vi) XYZ Company declared cash dividend of Rs. 4,000 (vii) Changes in Current Assets and Current Liabilities were as follows: 1,54,650 14,050 Cash Marketable securities Accounts receivable Allowance for bad debt Inventory Prepaid insurance Increase (Decrease) Rs. 500 1,600 (7,150) (1,900) 2,700 700 Accounts payable (for merchandise) Salaries payable Dividends payable Prepare a statement showing the amount of cash flow from operations. Rs. 5,650 (2,050) (3,000)