Question

Following balances as on 1st April, 2014:-
Particulars
Fixed assets
Less : Depreciation
28,50.000
9,97,500
Stocks and debtors
18,52,500
Bank balance
11,87,500
Creditors
1,66,250
Bills payable
2,85,000
Capital (shares of 100 each)
1,90,000
14,25,000
The company made the following estimates for financial year 2014-15 :---
(1) The company will pay a free of tax dividend of 10% the rate of tax being 25%.
(2) The company will acquire fixed assets costing 4,75,000 after selling one machine for 95,000
costing 2,37,500 and on which depreciation provided amounted to 1,66,250.
(3) Stocks and debtors, creditors and bills payable at the end of the year are expected to be
14,01,250, 3,70,500, and 2,47,000 respectively.
(4) The profit would be * 2,61,250 after depreciation of * 2,85,000.
Prepare a Cash flow statement and ascertain the bank balance at the end of the financial year
2014-15.
Ans. Cash inflow from operating activities : * 4,51,250; Cash used in investing activities :
3,80,000; Cash outflow from financing activities : 1,90,000; Bank balance at the end of
year: 47,500; Dividend paid : < 1,90,000
34. From the followng balance sheets and Income statement prepare cash flow statement ​

Answer 1

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