Question 5: Compute cash from operations from the following figures:
(i) Profit for the year 2016-17 is a sum of Rs. 10,000 after providing for depreciation of Rs. 2,000.
(ii) The current assets of the business for the year ended March 31, 2016 and 2017 are as follows:
Question 6: From the following Particulars of Bharat Gas Limited, calculate Cash Flows from Investing Activities. Also show the workings clearly preparing the ledger accounts:
|Notes||1||Tangible assets = Machinery|
|2||Intangible assets = Patents|
Figures of current year
Figures of previous year
1. Tangible Assets
2. Intangible Assets
3. Non-current Investments
10% long term investments
Investment in land
Shares of Amartex Ltd.
(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 the year was Rs. 1,40,000.
(c) On March 31, 2016, 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, 2017.
(d) Amartax 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.
Cash Flow from Investing Activities
Proceeds from Sale of Patents
Proceeds from Sale of Machinery
Proceeds from Sale of 10% Long-term Investment
Interest received on 10% Long-term Investment
Dividend Received from Amartax Ltd.
Purchase of Goodwill
Purchase of Machinery
Purchase of 10% Long-term Investment
Net Cash used in Investing Activities
Question 7: From the following Balance Sheet of Mohan Ltd. Prepare cash flow Statement:
Balance Sheet of Mohan Ltd.
as at 31 Mar. 2016 and 31 Mar. 2017
Machine Costing Rs. 80,000 on which accumulated depreciation was Rs. 50,000 was sold for Rs. 20,000.
Question 8: From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:
Notes on Accounts
Net Profit before Tax
Profit and Loss Account
Provision for Tax
Note: As per the solution, the Net Cash from Operating Activities, net Cash from Investing Activities and Net Cash from Financing Activities are Rs 56,000, Rs (60400) and Rs 8,800 respectively. However, as per the answer given in the book, the Net Cash from Operating Activities, net Cash from Investing Activities and Net Cash from Financing Activities are Rs 34,800, Rs (50,400) and Rs 20,000 respectively.
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Question 9: From the following information, prepare cash flow statement:
Depreciation Charge on Plant amount to Rs. 80,000.
Question 10: From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:
Notes to Accounts
Net Profit for the year after charging Rs. 50,000 as Depreciation was Rs. 1,50,000. Dividend paid on Share was Rs. 50,000, Tax Provision created during the year amounted to Rs. 60,000.
Question 11: Following is the Financial Statement of Garima Ltd., prepare cash flow statement.
Notes to Accounts
Question 12: From the following Balance Sheet of Computer India Ltd., prepare cash flow statement.
Notes to Accounts
Interest paid on Debenture Rs. 600
|1. What is a cash flow statement?|
|2. Why is a cash flow statement important?|
|3. What is the difference between cash flow statement and income statement?|
|4. How is a cash flow statement prepared?|
|5. What are the limitations of a cash flow statement?|