Page 85 - Corporate Finance PDF Final new link

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BRILLIANT’S Fund Flow Statement 85

df© Ho$ Xm¡amZ < 9,000 bmJV H$s nwamZr ‘erZar (E³¶y‘wboQ>oS> S>o{à{gEeZ < 8,000) H$mo < 3,000 ‘| ~oMm
J¶m Wm&
(c) A portion of investment was considered worthless and was written off the General
Reserve. The cost of such investment was ` 50,000.
{Zdoe H$m EH$ ^mJ ‘hÎdhrZ ‘mZm J¶m Wm VWm OZab [aOd© ‘| [aQ>Z Am°’$ {H$¶m J¶m Wm& Eogo {Zdoe H$s
bmJV < 50,000 Wr&
(d) During the year company paid interim dividend of ` 10,000 and the directors have
proposed a final dividend of ` 15,000 for the year 2018.
df© Ho$ Xm¡amZ H§$nZr Zo < 10,000 B§Q>[a‘ {S>{dS>|S> H$m ^wJVmZ {H$¶m Wm VWm S>m¶ao³Q>g© Zo df© 2018 Ho$ {bE
< 15,000 Ho$ ’$m¶Zb {S>{dS>|S> H$m àñVmd {H$¶m&
Solution:
Schedule of Changes in Working Capital

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

Current Assets
Debtors 1,18,300 1,67,800 49,500 –
Stock 55,600 90,500 34,900 –
Bank Balance 49,800 47,500 – 2,300
2,23,700 3,05,800
Current Liabilities
Creditors 1,33,650 1,95,350 – 61,700
1,33,650 1,95,350 84,400 64,000
(–) 64,000
Increase in Working Capital 20,400

Fund From Operations
Particulars Amount
(`)

Net Profit as per P & L A/c (33,450 – 20,450) 13,000
Add: Non-Cash Items & Appropriation
Interim Dividend 10,000
Depreciation 40,000
Provision for Tax 32,000
Preliminary Expenses Written off 7,200