Question
CASH FLOW STATEMENT EXERCISE BALANCE SHEET, March 31 20X5 20X4 Sources of Funds Shareholders Funds Equity Capital Rs. 3,50,000 Rs. 2,00,000 Profit and Loss Account
CASH FLOW STATEMENT EXERCISE
BALANCE SHEET, March 31
20X5
20X4
Sources of Funds
Shareholders Funds
Equity Capital
Rs. 3,50,000
Rs. 2,00,000
Profit and Loss Account
71,000
53,000
Loan Funds
Secured Loans
60,000
1,37,000
Unsecured Loans
1,67,000
1,19,000
Current Liabilities
Bills Payable
81,000
73,000
Creditors
98,000
1,20,000
Income Tax payable
35,000
20,000
Total Current Liabilities
2,14,000
2,13,000
Total Liabilities
8,62,000
7,22,000
Application of Funds
Fixed Assets
Plant and Machinery, Cost
Rs. 9,73,000
Rs. 8,18,000
Less Accumulated Depreciation
5,52,000
5,05,000
Fixed Assets, Net
4,21,000
3,13,000
Investments
1,17,000
1,42,000
Current Assets
Inventories
1,76,000
1,18,000
Debtors (less provisions for Doubtful
Debts Rs. 9000 and Rs. 7000)
1,25,000
93,000
Prepaid Expense
3000
5000
Cash and Cash Equivalents
20,000
51,000
Total Current Assets
3,24,000
2,67,000
Total Assets
8,62,000
7,22,000
Profit and Loss Account for the Year ended March 31, 20X5
Sales
Rs. 9,25,000
Interest Income
7,000
Gain on sale of plant and machinery
6,000
Rs. 9,38,000
Cost of Goods Sold1
6,69,000
Depreciation Expense
98,000
Selling and Administrative Expense
70,000
Interest Expense
22,000
Loss on Sale of Investments
9,000
Profit before Income tax and extraordinary item
70,000
Income Tax
30,000
Profit before extraordinary item
40,000
Extraordinary item: Insurance proceeds from Earthquake loss claim
3,000
Net Profit
43,000
Additional Information:
- Purchased machinery costing Rs. 1,73,000
- Sold machinery with cost of Rs. 67,000 and accumulated depreciation of Rs. 51,000 for Rs. 22,000
- Purchased investments for Rs. 26,000
- Sold investments costing Rs. 51,000 for Rs. 42,000
- Purchased machinery for Rs. 49,000 on unsecured credit
- Issued at par shares for Rs. 1,00,000
- Converted secured debentures of Rs. 50,000 to equity shares of Rs. 10 at par
- Paid dividends of Rs. 25,000
- Repaid unsecured loans of Rs. 1000
- Redeemed secured debentures of Rs. 27,000 at par
- Wrote off Rs. 10,000 of debtors when a customer being insolvent and provided Rs. 12,000 for doubtful debts, included in Selling and Administrative Expenses
- Received Rs. 3000 from an insurance claim for loss suffered in an earthquake
1 COGS includes cost of materials consumed, salaries and other manufacturing expenses
Can you help me build the cash flow statement?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Management Accounting
Authors: Late RC Sekhar, AV Rajagopalan
1st Edition
195683609, 978-0195683608
