Accounting for Managers Assignment 3 Section C

Marks (1.5x10) 15 Handwritten Due

Calculate the company's net cash flow used in investing and financing activities.

10. Shah Brothers' transactions for the year ended 31 December 2012 included the following:

- Cash Sales, Rs. 33,30,000

- Taxes and other compulsory payments, Rs. 70,000

- Sold investment securities, Rs. 9,00,000

- Cash borrowed from a bank, Rs. 4,30,000

- Cash paid for inventory, Rs. 8,00,000

- Issued 10,000 equity shares for land with a market value of, Rs. 6,50,000

- Purchased equipment, Rs. 1,00,000

- Purchased land, Rs. 5,00,000

- Paid Rs. 2,50,000 towards a bank loan

- Sold 600 of its 12% debenture bonds due in the year 2014 for Rs. 7,20,000

Calculate Shah Brothers' net cash inflows for (a) operating, (b) investing, and (c) financing activities. Explain the transactions that are not reported as part of the operating, investing, or financing activities of Shah Brothers, but are rather reported separately in the statement of cash flows.