The following information is also provided:

1. A dividend of $26,000 was paid during the year 2012

2. Profit before tax for the year was $62,530

3. During the year 2012, the company paid tax of $25,000

4. During the year, the company purchased another company and paid $60,000 in share capital. It acquired stock $ 21,640 and plant $18,360.

5. It purchased machinery costing $5,650 during the year

Problem 8 From the following Balance Sheet of PK Ltd, for the years ending 31-12-2011 and 31-12-2012, prepare cash flow statement. Liabilities 2011 2012 Assets 2011 2012 $ $ $ $ Equity share capital 2,15,000 2,75,000 Goodwill 20,000 Reserves 40,000 40,000 Plant & Mach. 1,12,950 1,16,200 Profit and Loss A/C 39,690 41,220 Land and Building 1,48,500 1,44,250 Provision for tax 40,000 50,000 Current assets 1,98,530 1,70,730 Bank loan 59,510 Cash 7,500 7,700 Current liabilities 73,280 52,660 4,67,480 4,58,880 4,67,480 4,58,880