Page 120 - Corporate Finance PDF Final new link

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120 Corporate Finance BRILLIANT’S

Purchase of Fixed assets (14,56,000)
Investment in joint venture (3,85,000)
Expenditure on construction W.I.P. (34,74,000)
Net Cash used in Investing Activities (2) (22,63,400)

3. Cash Flow from Financing Activities:
Proceeds from calls in arrear 200
Receipts of grants for capital projects 1,200
Long-term borrowings 25,98,000
Short-term borrowings 20,57,500
Interest paid (10,52,000)
Dividend (including dividend tax) paid (8,53,500)
Net cash from Financing Activities (3) 27,51,400
Net increase in cash and cash equivalents [(1) + (2) + (3)] 1,98,500
Cash-in-hand & Bank Balance in the beginning 5,00,300
Cash-in-hand & Bank Balance at the end 6,98,800
Working Note:
1. Net-Profit before Tax:
Net Profit 25,00,000
Income Tax Provision 5,00,000
30,00,000
2. Assets Sold:
Book Value 18,500
Less: Loss on Sale 4,000
Sale 14,500
3. Investment Sold:
Carry Value 27,76,500
Add: Profit on sale 10,000
Sale 27,86,500
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REVIEW QUESTIONS

Q.1. Distinguish between fund flow and cash flow statement.
\§$S> âbmo VWm H¡$e âbmo ñQ>oQ>_|Q> Ho$ ~rM A§Va ~VmB`o& [See Q.11]
Q.2. Explain the managerial uses of cash flow statement.
H¡$e âbmo ñQ>oQ>_|Q> Ho$ _¡ZoO[a`b Cn`moJ H$m dU©Z H$s{OE& [See Q.13]
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