Question

From the following Balance Sheet of Dreams Converge Ltd as at 31.3.2018 and 31.3.2017;
Calculate Cash from operating activities. Showing your workings clearly
Particulars Note
No.
31.3.2018
(₹)
31.3.2017
(₹)
I. EQUITY AND LIABILITY :
1. Shareholder’s Fund: 7,00,000 5,00,000
a. Share Capital
b. Reserve and Surplus 3,50,000 2,00,000
2. Non-Current Liabilities:
Long Term Borrowings 50,000 1,00,000
3. Current Liabilities:
a. Trade Payables 1,22,000 1,05,000
b. Short term Provisions (Provision for tax) 50,000 30,000
TOTAL 12,72,000
=======
9,35,000
=======
II. ASSETS :
1. Non Current Assets:
a. Fixed Assets:
i. Tangible Assets 1 5,00,000 5,00,000
ii. Intangible Assets 2 95,000 1,00,000
b. Non-current Investments 1,00,000 Nil
2. Current Assets:
a. Inventory 1,30,000 55,000
b. Trade Receivable 1,47,000 80,000
c. Cash and Cash Equivalents 3,00,000 2,00,000
TOTAL 12,72,000
=======
9,35,000
=======
Notes
Note
Numbe
r
Particulars 31.3.2018
(₹)
31.3.2017
(₹)
1 Tangible Assets:
Machinery 2,80,000 2,00,000
Accumulated depreciation (1,00,000) (80,000)
1,80,000 1,20,000
Equipment 3,20,000 3,80,000
5,00,000 5,00,000
2 Intangible Assets :
Goodwill 95,000 1,00,000
Additional Information:
i. Machinery of the book value of 80,000 (accumulated depreciation ₹ 20,000 ) was sold
at a loss of ₹ 18,000

Answer 1

Answer:Here is how I solved the question

Explanation: