Balance of retained earnings 31st March, previous year 33,91,900 Less: Net loss of current year 1,19,350 2,72.550 However, the balance of retained earnings as on December 31, current year is 2,68,550, that is, 54,000 less. In the absence of any other information, this amount is assumed to have been paid as dividends to equityholders. P.5.8 The following are the summarised balance sheets of Sound Ltd. as on March 31 for the two con- secutive years 1 and 2: in thousand) Particulars Year 2 Year 1 Assets: Plant and machinery 1.980 1,010 Land and buildings 1.000 1.000 Long-term investments 550 550 Short-term investments 470 85 Sundry debtors 2,195 2,500 Inventories 1,400 1.300 Interest receivable 100 65 Cash in hand 300 500 Cash in bank 405 300 8,400 7,310 Liabilities: Share capital 2,600 2,150 Reserve and surplus 1,460 900 15% debentures 2,000 1.800 Sundry creditors 440 650 Wages outstanding 40 20 Income-tax payable 400 450 Accumulated depreciation: Plant and machinery 910 840 Land and buildings 550 500 8.400 7.310 y10 Income Statement for the period ending March 31, year 2 Sales revenue Less: Cost of sales Gross profit Less: Depreciation Selling and administration expenses Interest paid Add: Interest income Dividend income (gross) Net profit before extraordinary items Add: Insurance settlement received in thousand) 45,300 39,000 6.300 (540) (2.960) (300) 65 95 2,660 10 2,670 550 2,120 Less: Provision for income taxes Net profit after taxes Additional information in thousand: (1) 15% Debentures of 300 was redeemed during year 2. (2) Tax deducted at source on dividends received (included in provision for taxes) amounts to 15. (3) A plant costing 500, having accumulated depreciation of 420 was sold for 280. (4) During year 2, interim dividend of 760 was paid; final dividend paid was 1800. (5) All sales and purchases are made on credit basis. You are required to prepare a cash flow statement as per AS-3 (revised). Balance of retained earnings 31st March, previous year 33,91,900 Less: Net loss of current year 1,19,350 2,72.550 However, the balance of retained earnings as on December 31, current year is 2,68,550, that is, 54,000 less. In the absence of any other information, this amount is assumed to have been paid as dividends to equityholders. P.5.8 The following are the summarised balance sheets of Sound Ltd. as on March 31 for the two con- secutive years 1 and 2: in thousand) Particulars Year 2 Year 1 Assets: Plant and machinery 1.980 1,010 Land and buildings 1.000 1.000 Long-term investments 550 550 Short-term investments 470 85 Sundry debtors 2,195 2,500 Inventories 1,400 1.300 Interest receivable 100 65 Cash in hand 300 500 Cash in bank 405 300 8,400 7,310 Liabilities: Share capital 2,600 2,150 Reserve and surplus 1,460 900 15% debentures 2,000 1.800 Sundry creditors 440 650 Wages outstanding 40 20 Income-tax payable 400 450 Accumulated depreciation: Plant and machinery 910 840 Land and buildings 550 500 8.400 7.310 y10 Income Statement for the period ending March 31, year 2 Sales revenue Less: Cost of sales Gross profit Less: Depreciation Selling and administration expenses Interest paid Add: Interest income Dividend income (gross) Net profit before extraordinary items Add: Insurance settlement received in thousand) 45,300 39,000 6.300 (540) (2.960) (300) 65 95 2,660 10 2,670 550 2,120 Less: Provision for income taxes Net profit after taxes Additional information in thousand: (1) 15% Debentures of 300 was redeemed during year 2. (2) Tax deducted at source on dividends received (included in provision for taxes) amounts to 15. (3) A plant costing 500, having accumulated depreciation of 420 was sold for 280. (4) During year 2, interim dividend of 760 was paid; final dividend paid was 1800. (5) All sales and purchases are made on credit basis. You are required to prepare a cash flow statement as per AS-3 (revised)