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From the following particular, prepare cash Flow Statement:
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| Particulars | 2022 | 2021 |
| Equity & Liabilities | ||
| 1.Shareholders’ Funds | ||
| (a)share capital (note 1) | 5,00,000 | 5,50,000 |
| (b) reserves and surplus (note 2) | 1,28,000 | 70,000 |
| (2) non-current liabilities | ||
| Trade payables | 99,000 | 75,000 |
| Other current liabilities (bank overdraft) | 23,000 | 13,000 |
| Short-term provisions (note 3) | 1,00,000 | 82,000 |
| Total | 8,50,000 | 6,90,000 |
| ii. assets | ||
| (1) non-current assets | ||
| Tangible fixed assets (net) | 3,70,000 | 2,80,000 |
| Tangible assets (goodwill) | 90,000 | 1,15,000 |
| (2) current assets | ||
| Current investments | 10,000 | 15,000 |
| Cash & cash equivalents | 41,000 | 23,000 |
| Other current assets | 3,39,000 | 2,57,000 |
| Total | 8,50,000 | 6,90,000 |
NOTE 1: SHARE CAPITAL
| Particulars | 31.03.2022 | 31.03.2021 | |
| Equity Share Capital | 4,00,000 | 3,00,000 | |
| 15% Preference Share Capital | 1,00,000 | 1,50,000 | |
| 5,00,000 | 5,50,000 | ||
Note 2: short- term provisions
| Particulars | 31.03.2022 | 31.03.2021 | |
| Provision for tax | 1,00,000 | 82,000 | |
| 1,00,000 | 82,000 | ||
Additional information: a machine costing 50,000 (depreciation provided thereon 30,000) was sold for 10,000. depreciation charged during the year was 20,000. Interim dividend paid, 20,000 paid, income-tax, 35,000 paid.
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| Particulars | 2022 | 2021 |
| I. Cash Flow from Operating Activities | ||
| A. Net Profit before tax | 1,43,000 | |
| B. Adjustments for Non- Cash and Non-Operating items: | ||
| Deprecation on Fixed Assets | 20,000 | |
| Loss on Sale of Machinery | 10,000 | |
| Goodwill amortized | 25,000 | 55,000 |
| C. operating profit before working capital changes | 1,98,500 | |
| D. changes in current assets & current liabilities: | ||
| Increase in trade payables | 24,000 | |
| Increase in other current assets | (82,000) | (58,000) |
| E. net cash flow from operating activities before tax | 1,40,500 | |
| F. less: tax paid | (35,000) | |
| G. net cash inflow from operating activities after tax | 1,05,500 | |
| II. cash flow from investing activities. | ||
| Sale of machinery | 10,000 | |
| Purchase of fixed assets | (1,30,000) | |
| Net cash used in investing activities | (1,20,000) | |
| III. cash flow from financing activities: | ||
| Increase bank overdraft | 10,000 | |
| Issue of share capital (1,00,000 + 10,000) | 1,10,000 | |
| Interim dividend paid on equity shares | (20,000) | |
| Redemption of preference shares | (50,000) | |
| Dividend on preference share | (22,500) | |
| Net cash used in financing activities | 27,500 | |
| IV. net increase in cash and cash equivalents (I + II +III) | 13,000 | |
| V. opening cash and cash equivalents (23,000 – 15,000) | 38,000 | |
| VI. closing cash and cash equivalents (41,000 – 10,000) | 51,000 |
Working notes:
- Fixed assets account
Particulars ₹ Particulars ₹ To balance b/d 35,000 By depreciation a/c. 20,000 To bank a/c (purchase) (b. f) 1,30,000 By bank a/c (sale) 10,000 By P&L a/c (loss) 10,000 By balance c/d 3,70,000 4,10,000 4,10,000