ILLUSTRATION 2.
Following particulars are given to you:
Trade Investments
2,50,000
Marketable Securities
40,000
Tangible Fixed Assets
6,00,000
Intangible Assets (Goodwill)
1,00,000
Trade Receivables
2,00,000
Less : Provision for Doubtful Debts
20,000
1,80,000
Cash and Bank Balance
80,000
Trade Payables
1,20,000
Rent Payable
10,000
Dividend Payable
30,000
Inventories
3,90,000
Long term Borrowings (8% Debentures)
2,80,000
Short term Borrowings (Bank Overdraft)
25,000
Short term Provisions :
Provision for Tax
55,000
Income Tax Paid in Advance
30,000
Calculate the Liquidity Ratios and Comment upon the short-term financial
position of the company.
Answers
Answer:
From the following Balance Sheet of Kiero Ltd. and the additional information as on 31-3-2018. prepare a Cash Flow Statement:
Kiero Ltd.
Balance Sheet as at 31-3-2018
Particulars Note
No. 31-3-18
(Rs.) 31-3-17
(Rs.)
I. Equity and Liabilities
(1) Shareholders Funds
(a) Share Capital
(b) Reserves and Surplus
(2) Non - Current Liabilities
Long term Borrowings
(3) Current Liabilities
(a) Short term borrowings
(b) Short term Provisions
1
2
3
4
7,90,000
4,60,000
5,00,000
1,15,000
1,18,000
5,80,000
1,20,000
3,00,000
42,000
46,000
Total
19,83,000 10,88,000
II. Assets
(1) Non-Current Assets
Fixed Assets
(i) Tangible Aseets
(ii) Intangible Assets
(2) Current Assets
(a) Current Investments
(b) Trade Recivables
(c) Cash and Cash Equivalents 5
6
9,80,000
2,68,000
1,40,000
4,40,000
1,55,000
6,35,000
1,70,000
70,000
1,50,000
63,000
Total 19,83,000 10,88,000
Notes to Accounts:
Note
No. Particulars 31-3-18
(Rs.) 31-3-17
(Rs.)
1. Reserve and Surplus
Surplus (Balance in statement of Profit & Loss)
General Reserve
3,20,000
1,40,000
60,000
60,000
4,60,000 1,20,000
2. Long-term Borrowing
12% Debentures
5,00,000
3,00,000
5,00,000 3,00,000
3. Short-term Borrowing
Bank Overdraft
1,15,000
42,000
1,15,000 42,000
4. Short-term Provisions
Provision for Tax
1,18,000
46,000
1,18,000 46,000
5. Tangible Assets
Plat and Machinery
Less: Accumulated Depreciation
11,00,000
(1,20,000)
7,50,000
(1,15,000)
9,80,000 6,35,000
6. Intangible Assets
Goodwill
2,68,000
1,70,000
2,68,000 1,70,000
Additional Information:
12% debentures were issued in 1
st
September, 2017.