Q1. The Goodwill of X ltd. increased from 2, 00,000 in 2013-14 to 3, 50,000 in 2014-15. What will be its treatment while preparing Cash Flow Statement for the year ended 31st March 2015?
Q2. Kartik Mutuals, a mutual fund company, provides you the following information:
Equity Share Capital raised during the year 3,00,000
10% bank loan repaid was 1,00,000
Dividend received during the year was 20,000
Find out the cash flow from financing activities
Q3. Prepare Cash Flow Statement from the following Balance sheets and Additional information
(i) An old machinery having book value of Rs 72,000(accumulated depreciation was Rs.30,000) was sold for 56,000.
(ii) Depreciation provided on machinery during the year was Rs 28,000.
Q4. Calculate cash flow from financing activities:
a. Debentures were redeemed at a premium of 10%.
b. Additional preference shares were issued on 1stjuly 2011 at premium of 10%
c. Provide dividends on preference shares up to date.
d. Shares were issued at a premium of 10% and under writing commission paid was Rs.10000.
e. Dividend on equity shares made during the year was Rs 40000.
Q5. Calculate cash flow from investing activities clearly preparing the ledger accounts:
(a) Patents were written off to the extent of Rs. 40,000 and some Patents were sold at a profit of Rs. 20,000.
(b) A Machine costing Rs. 1,40,000 (Depreciation provided thereon Rs. 60,000) was sold for Rs. 50,000. Depreciation charged during theyear was Rs. 1,40,000.
(c) On March 31, 2007, 10% Investments were purchased for Rs. 1,80,000 and some Investments were sold at a profit of Rs. 20,000. Interest on Investment was received on March 31, 2011.
(d) Fufu Ltd. paid Dividend @ 10% on its shares.
(e) A plot of Land had been purchased for investment purposes and let out for commercial use and rent received Rs. 30,000.
Q6 Prepare a Cash Flow Statement from the following Balance Sheet of Shuchi Diamonds Ltd.:
BALANCE SHEET OF SHUCHI DIAMONDS L TO. as at 31st March, 2014
• tax paid during the year was Rs.40,000.
• A Machine costing Rs. 50,000 (depreciation provided thereon Rs. 30,000) was sold for Rs.
10,000 during the year.
|1. What is a cash flow statement?|
|2. Why is cash flow statement important in financial analysis?|
|3. What are the three main categories in a cash flow statement?|
|4. How can a negative cash flow impact a company?|
|5. How can a company improve its cash flow?|