C15 Net increase in cash 100 Cash at beginning of the period 50 Cash at end of the period 150 Illustration 6 Given below is Profit and Loss Account of ABC Ltd. and relevant Balance Sheet information: Profit and Loss Account of ABC Ltd. for the year ended 31st December, 2006 Rs.in lakhs Revenue: Sales 4,150 Interest and dividend 100 Stock adjustment 20 Total (A) 4270 Expenditure: Purchases 2,400 Wages and salaries 800 Other expenses 200 Interest 60 Depreciation 100 Total (B) 3,560 Profit before tax (A-B) 710 Tax provision 200 Profit after tax 510 Balance of Profit and Loss account brought forward 50 Profit available for distribution (C) Appropriations: Transfer to general reserve 200 Proposed dividend 300 Distribution tax 30 Total (D) 530 Balance (C-D) 30 Relevant Balance Sheet information 31.12.2006 31.12.2005 Debtors Inventories Creditors Outstanding wages Outstanding expenses Advance tax Tax provision Assessed tax liability Rs.in lakhs 400 200 250 50 20 Rs.in lakhs 250 180 230 40 10 180 180 200 Compute cash flow from operating activities using both direct and indirect method