Page 369 - VIRANSH COACHING CLASSES

Practical Problems on Cash Flow Statement.
Illustration I
From the following information prepare the cash flow statement:

Particulars Amount (`)
Opening Cash Balance 30,000
Closing Cash Balance 34,000
Decrease in Stock 16,000
Increase in Bills Payable 24,000
Sale of fixed Assets 60,000
Payments of long term Loan 1,00,000
Net Profit for the year 4,000

Solution :
Cash Flow Statement
Particulars Amount (`) Amount (`)
A) Cash flow from Operating Activities : Net Profit before 4,000
taxation
Add : Decrease in Current Assets : Stock 16,000
Add : Increase in Current liabilities : Bills payable 24,000 40,000

Net Cash from Operating Activities : (A) 44,000
B) Cash Flow from Investing Activities : Sale of fixed Assets 60,000
Net Cash from Investing Activities (B) 60,000
C) Cash Flow from Financing Activities : Repayment of Long 1,00.000
term Loan
Net Cash used in Financing Activities (C) 1,00,000
Net Increase in Cash and Cash Equivalents (A + B − C) 4,000
Cash and Cash Equivalents at the beginning of Period 30,000
Cash and Cash Equivalents at the end of Period 34,000

Illustration 2:
From the following Balance Sheet of Mr. Anand as on 1 April 2018 & 31 March 2019. prepare
st
st
the Cash Flow Statement.
Liabilities 1 April 2018 31 March 2019 Assets 1 April 2018 31 March 2019
st
st
st
st
(`) (`) (`) (`)
Capital 1,48,000 1,49,000 Stock 25,000 22,000
Sundry Creditors 36,000 41,000 Debtors 35,000 38,400
Long Term Loan 30,000 45,000 Cash 4,000 3,600
Buildings 50,000 55,000
Machinery 80,000 86,000
Land 20,000 30,000
2,14,000 2,35,000 2,14,000 2,35,000

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