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In direct method cash flow statement With the help of the following comparative balance sheet, income statement and additional information of Reliance Company, you are
In direct method cash flow statement With the help of the following comparative balance sheet, income statement and additional information of Reliance Company, you are required to prepare In Direct method Cash flow statement of Reliance company for the year ended March 31st 2020.
Adjustments:
During the year 2019-20, long-term investments worth of Rs 40,000 are purchased by paying cash.
During the year 2019-20, equipment with a net book value of Rs 6,000 is sold at cost.
Comparative Income statement for Reliance Company for the year ending \begin{tabular}{|l|r|r|} \multicolumn{2}{|c|}{ March 312020} \\ \hline & 31Mar19 & 31Mar20 \\ \hline Assets: & & \\ \hline Cash and bank & 60,000 & 75,000 \\ \hline Receivables & 63,000 & 54,000 \\ \hline Inventory & 29,000 & 32,000 \\ \hline Long term Investments & 150,000 & 190,000 \\ \hline Equipment & 95,000 & 47,000 \\ \hline & 397,000 & 398,000 \\ \hline Liabilities and Shareholders' Equity: & & \\ \hline Accounts payables & 29,000 & 35,000 \\ \hline Tax payable & 26,000 & 16,000 \\ \hline Deferred revenue (short-term) & 20,000 & 11,300 \\ \hline Long Term loans & 128,000 & 105,700 \\ \hline Common stock & 120,000 & 120,000 \\ \hline Retained earnings & 74,000 & 110,000 \\ \hline \multicolumn{1}{|r|}{ Total Liabilities and Equity } & 397,000 & 398,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Income Statement of Reliance Company the Year ending 31 March, 2020 } \\ \hline Revenue: & \\ \hline Sales revenue & 1500,000 \\ \hline Dividend received & 28,000 \\ \hline Interest received & 12,000 \\ \hline Expenses: & 1540,000 \\ \hline Cost of goods sold (COGS) & \\ \hline Salary expenses & 956,000 \\ \hline Depreciation and amortization expenses & 330,000 \\ \hline Interest expense & 42,000 \\ \hline Income tax & 46,000 \\ \hline Total Expenses & 10,000 \\ \hline Net Income or Profit after Tax & 1384,000 \\ \hline \end{tabular}Step by Step Solution
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