Page 80 - Corporate Finance PDF Final new link

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80 Corporate Finance BRILLIANT’S

Buildings / {~pëS>¨½g 1,00,000 80,000
Machinery / ‘erZar 40,000 1,50,000

Furniture / ’$ZuMa 20,000 18,000
Goodwill / JwS>{db 30,000 12,000
Preliminary Exp. / {à{b{‘Zar E³gn|gog 20,000 10,000

Current Assets / H$a§Q> AgoQ²>g 1,40,000 1,50,000
3,50,000 4,20,000
Following additional information is given: / {ZåZ{b{IV A{V[a³V gyMZmE§ Xr J¶r h¢…

(a) Depreciation on: Furniture ` 4,000, Machinery ` 10,000, Building ` 30,000
S>o{à{gEeZ… ’$ZuMa < 4000, ‘erZar < 10000, {~pëS>¨J < 30000

(b) Dividends paid ` 10,000. / {S>{dS>|S> ^wJVmZ < 10000
Prepare Schedule of Working Capital Changes and Funds Flow Statement.
d{Hª$J H¡${nQ>b M|Oog VWm ’§$S> âbmo ñQ>oQ>‘|Q> H$m eoS²>¶yb V¡¶ma H$s{OE&
Solution: Schedule of Changes in Working Capital

Particulars Effect Changes on
Working Capital
2017 2018 Increase Decrease
(`) (`) (`) (`)

Current Assets 1,40,000 1,50,000 10,000 –
1,40,000 1,50,000
Current Liabilities 1,20,000 1,50,000 – 30,000
1,20,000 1,50,000
Working Capital 20,000 0 10,000 30,000
10,000
Net Decrease in Working Capital 20,000
Funds Flow Statement

Source of Funds Amount Application of Funds Amount
(`) (`)
Issue of Shares 20,000 Purchase of Furniture 2,000
Net Decrease in Working Capital 20,000 Purchase of Machinery 1,20,000
Long-Term Debt Raised 10,000 Purchase of Building 10,000
Funds from Operations 92,000 Payment of Dividend 10,000
1,42,000 1,42,000