. The summarized balance sheet of Bhadresh Ltd. as on 31.12.05 and 31.12.2006 are as
follows:
Liabilities 2005 2006 Assets 2005 2006
Share
capital
General
Reserve
P & l a/c
Creditors
Tax
provision
Mortgage
loan
4,50,000
3,00,000
56,000
1,68,000
75,000
4,50,000
3,10,000
68,000
1,34,000
10,000
2,70,000
Fixed asset
Investment
Stock
Debtor
Bank
4,00,000
50,000
2,40,000
2,10,000
1,49,000
3,20,000
60,000
2,10,000
4,55,000
1,97,000
10,49,000 12,42,000
Additional Details: 1. Investment costing Rs. 8,000 were sold for Rs. 8,500 2. Tax
provision made during the year was Rs. 9,000 3. During the year part of fixed assets
costing Rs 10,000 was sold for Rs 12,000 and the profit was included in P & L A/c. You
are required to prepare cash flow statement for 2006.
Answers
Answer:
very big tax
Explanation:
Cash flows statement for the year ended 31-3-2006
Particular. Rs. Rs
Cash flows from operating activities:
Net profit before tax 31,000
Adjustment for:
Depreciation. 70,000
profit on sale of
investment. (500)
profit on sale of
fixed asset (2000)
decrease in stock. 30,000
decrease in creditor. (34,000)
increase in debtor. (2,45,000)
income tax paid. (74,000)
NET CASH FLOWS FROM
OPERATING ACTIVITIES. (2,24,500)
Cash flows from investing activities:
investment purchase. (18,000)
sale of investment. 8500
sale of fixed asset. 12,000
NET CASH FLOWS FROM
INVESTING ACTIVITIES. 2500
Cash flows from financing activities:
Mortgage loan taken 2,70,000
NET CASH FLOWS
FROM ALL ACTIVITIES. 48,000
Add: opening cash balance. 149,000
Closing cash balance. 1,97,000