Q2. From the following condensed comparative Balance Sheets of Bangalore Mills Ltd and the given additional information, prepare a Cash Flow Statement for the year 2012. Liabilities 2011 70,000 9,000 2011 62,000 2012 66,000 Share Capital Share Premium 23,820 Retained earnings 7% Mortgage loan (37,000) 95,000 (43,000) 2012 Assets 80,000 Plant & Machinery 11,000 Accumulation Dep. on plant and machinery 30,820 Building 20,000 Accumulation dep. on building 6,000 Land 1,400 Stock 1,400 Debtors Prepaid expenses Cash 1,50,620 (26,200) 1,16,000 (45,000) Creditors Outstanding salaries Provision for taxation 6,900 2,000 1,000 10,000 10,220 8,600 720 6,180 1,12,720 12,000 9,620 7,600 800 9,800 1,50,620 1,12,720 Additional Information: 1. Plant costing 16,000 (accumulated depreciation 14,800) was sold during the year for 1,200. 2. Building was acquired during the year at a cost of 21,000. In addition to cash payment of 1,000, a 7% mortgage loan was raised for the balance. 3. Dividend of 8,000 was paid during the year. 4. A sum of 13,900 was transferred to provision for taxation account in 2012