Question
Prepare the cashflow statement of Horizon Ltd from the following information for the year 2020. Also state with the help of visual analysis of the
Prepare the cashflow statement of Horizon Ltd from the following information for the year 2020. Also state with the help of visual analysis of the cashflow statement, whether as a prospective investor will you be interested in investing in the company. Why or why not?
Balance sheet of Horizon Ltd
| Liabilities | 2019 | 2020 | Assets | 2019 | 2020 |
| Equity share capital | 3,00,000 | 4,00,000 | Goodwill | 115000 | 90000 |
| 8% Redeemable Preference share | 1,50,000 | 1,00,000 | Land and Building | 2,00,000 | 1,70,000 |
| General Reserve | 40,000 | 70,000 | Plant | 80,000 | 2,00,000 |
| Profit and Loss | 30,000 | 48,000 | Debtors | 1,60,000 | 2,00,000 |
| Proposed Dividend | 42,000 | 50,000 | Stock | 77,000 | 1,09,000 |
| Creditors | 55,000 | 83,000 | Bills receivables | 20,000 | 30,000 |
| Bills Payable | 20,000 | 16,000 | Cash | 25000 | 18000 |
| Provision for Taxation | 40,000 | 50,000 | |||
| 6,77,000 | 8,17,000 | 6,77,000 | 8,17,000 |
Additional Information:
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Depreciation on Plant is Rs.10,000 and depreciation on Land and Building is Rs.20,000 for the year 2020
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An interim dividend of Rs.20,000 has been paid in 2020
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Mastering Attribution In Finance
Authors: Andrew Colin
1st Edition
1292114029, 978-1292114026
