Cash Flow Statement
Time – 50 mins
M.M. - 30
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? (1 mark)
Q2. Kartik Mutuals, a mutual fund company, provides you the following information: 31st March 2013 31st March 2014 Proposed Dividend 20,000 15,000 Additional 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. (1 mark)
Q3. Prepare Cash Flow Statement from the following Balance sheets and Additional information:
Particulars | 31/03/2013 | 31/03/2012 |
Equity and Liabilities Shareholders Fund Share Capital Reserves and Surplus Non Current Liabilities 10% Debentures Current Liabilities Trade payables | 6.30.000 3.08.000 1,00,000 1.80.000 | 5.60.000 1.82.000 1.50.000 32.000 |
Total | 12,18,000 | 9,24,000 |
Assets Non Current Assets Fixed Assets : Plant Current Assets Inventories Trade Receivables Cash And Cash Equivalents | 3.92.000 98.000 6.30.000 98.000 | 2,80,000 1.40.000 4.20.000 84.000 |
Total | 12,18,000 | 9,24,000 |
Additional Information:
(i) An old machinery having book value of Rs. 72,000(accumulated depreciation was Rs. 30,000) was sold for Rs. 56,000.
(ii) Depreciation provided on machinery during the year was Rs. 28,000. (6 mark)
Q4. Calculate cash flow from financing activities:
Equity and liabilities 2012 2011
10% debentures 20,0000 40,0000
Equity shares 60,0000 10,0000
15% preference shares 50,0000 10,0000
Public deposits 12,0000 15,0000
Proposed dividends 15,000 25,000
Additional info:
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. (6 mark)
Q5. Calculate cash flow from investing activities clearly preparing the ledger accounts:
Assets 2010 2011
Goodwill 1,00,000 3,00,000
Patents 2,80,000 1,60,000
Machinery 10,20,000 12,40,000
10% Long-term investment 60,000 1,60,000
Investment in land 1,00,000 1,00,000
Shares in Fufu ltd. 1,00,000 1,00,000 Additional Information:
(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. (8 mark)
Q6. Prepare a Cash Flow Statement from the following Balance Sheet of Shuchi Diamonds Ltd:
Balance Sheet of Shuchi Diamonds Ltd. as at 31st March, 2014
Particular | Note | 31 st | 31st |
2014(Rs.) | 2013 (Rs. | ||
I. Equity and Liabilities 1. Shareholders' Funds | |||
(a) Share Capital | 40,00,000 | 34,00,000 | |
(b) Reserves and Surplus 2. Non-Current Liabilities | 1 | 6,00,000 | 8,00,000 |
Long-term Borrowings | 2 | 4,00,000 | 2,00,000 |
3. Current Liabilities | |||
(a) Trade Payables | 1,00,000 | 2,00,000 | |
(b) Other Current Liabilities | 3 | 1,00,000 | 80,000 |
Total | 52,00,000 | 46,80,000 | |
I. ASSET 1S. Non-Current Assets | |||
(a) Fixed Assets | |||
(i) Tangible Assets | 4 | 16,00,000 | 18.00,000 |
(i i) Intangible Assets | 12,00,000 | 10,00,000 | |
(b) Non-current Investments | 6,00,000 | 5,00,000 | |
2. Current Assets | |||
(a) Inventories | 2,00,000 | ||
(b) Trade Receivables | 6,00,000 | 5,00,000 | |
(c) Cash and Cash Equivalents | 10,00,000 | 8,80,000 | |
Total | 52,00,000 | 46,80,000 | |
Notes to accounts | |||
Particulars | 31st | 31st | |
2014 ('f) | 2013{Rs.) | ||
1. Reserves and Surplus | |||
Surplus, i.e., Balance in Statement of Profit and Loss | 6,00,000 | 8,00,000 | |
2. Long-term Borrowings | |||
9% Debentures | 4,00,000 | 2,00,000 | |
3. Other Current Liabilities | |||
Outstanding Expenses | 1,00,000 | 80,000 | |
4. tangible Assets | 18,00,000 | ||
Machinery | 16,00,00 0 |
Additional Information:
• 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. (8 mark)
79 docs|41 tests
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1. What is a cash flow statement? |
2. Why is a cash flow statement important? |
3. How is a cash flow statement prepared? |
4. What are the three main sections of a cash flow statement? |
5. How can a negative cash flow affect a company? |
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