Page 86 - Corporate Finance PDF Final new link
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86 Corporate Finance BRILLIANT’S
Proposed Dividend 15,000 1,04,200
1,17,200
Less: Non-Operating Profit
Profit on Sale of Fixed Assets 2,000
Funds from Operations 1,15,200
Funds Flow Statement
Source of Funds Amount Application of Funds Amount
(`) (`)
Funds From Operations 1,15,200 Increase in Working Capital 20,400
Issue of Share Capital 40,000 Tax Paid 50,000
Sale of Fixed Assets 3,000 Interim Dividend 10,000
Purchase of Fixed Assets 49,000
Proposed Dividend 28,800
1,58,200 1,58,200
Working Notes:
Dr. Provision for Tax A/c Cr.
Particulars Amount Particulars Amount
(`) (`)
To Tax Paid (Balancing figure) 50,000 By Balance b/d 50,000
To Balance c/d 32,000 By P & L A/c 32,000
82,000 82,000
Dr. Fixed Assets A/c Cr.
To Balance b/d 4,80,000 By Bank A/c 3,000
To P & L A/c (Profit) 2,000 By Accumulated Depreciation 8,000
To Bank A/c 49,000 By Balance c/d 5,20,000
5,31,000 5,31,000
USES AND LIMITATIONS OF FUND FLOW STATEMENT
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Q.10. Write the managerial uses and limitations of funds flow statement.
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OR
What are the main drawbacks of fund flow statement?
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