The Balance Sheets of Somebody Ltd. as on 31.3.2014 and 31.3.2015 prov

The Balance Sheets of Somebody Ltd. as on 31.3.2014 and 31.3.2015 provide the following information. Prepare Cash Flow Statement from the given figures:Liabilities20142015Assets20142015Equity share capital2,00,0005,00,000Fixed Assets3,00,0004,50,000Profit and Loss 1,25,00025,00Stock1,00,0001,50,00010% Debentures1,00,00075,000Debtors75,0001,25,0008% Preference Share Capital50,00075,000Bank45,00065,000General Reserve45,0001,15,0005,20,0007,90,0005,20,0007,90,000During the year, a machinery costing Rs. 70,000 was sold for Rs. 15,000. Dividend of Rs. 24,000 was paid.

Answer»

Calculation of Net Profit/ Loss before Tax:

Cash Flow Statement as on 31^st March,2015

Particulars	Rs.	Rs
A. Cash Flow from Operating Activities :		(6,000)
Net Loss as per Profit & Loss Account
Adjustments :
Adjustments :	10,000
Add: Loss on sale of machinery	55,000	65,000
Operating Profit before Working Capital Changes
Adjustments for Working Capital Changes
Less : Increase in Current Assets
Stock	(50,000)
Debtors	(50,000)	(1,00,000)
Net Cash used in Operating Activities		(41,000)
B. Cash Flow from Investing Activities
Sale of Fixed Assets	15,000
Purchase of Fixed Assets	(2,20,000)
Net Cash used in Investing Activities		(2,05,000)
C. Cash Flow from Financing Activities :
Issue of Equity Share Capital	3,00,000
Issue of Preference Share Capital	25,000
Redemption of Debentures	(25,000)
Dividend Paid	(24,000)
Interest on Debentures paid	(10,000)
Net Cash Flow from Financing Activities		2,66,000
Net Increase / Decrease in Cash & Cash Equivalents		20,000
Add : Opening Cash and Cash Equivalents		45,000
Closing Cash and Cash Equivalents		65,000