Following is the Financial Statement of Garima Ltd., prepare cash flow statement.
| Particulars | Note No. | 31st March 2017 (Rs) | 31st March 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Share capital | 1 | 4,40,000 | 2,80,000 |
| b) Reserve and surplus-Surplus | 2 | 40,000 | 28,000 |
| 2. Current Liabilities | |||
| a) Trade payables | 1,56,000 | 56,000 | |
| c) Short-term provisions | 12,000 | 4,000 | |
| (Provision for taxation) | |||
| Total | 6,48,000 | 3,68,000 | |
| II) Assets | |||
| 1. Non-current assets | |||
| a) Fixed assets | |||
| i) Tangible | 3,64,000 | 2,00,000 | |
| 2. Current assets | |||
| a) Inventories | 1,60,000 | 60,000 | |
| b) Trade receivables | 80,000 | 20,000 | |
| c) Cash and cash equivalents | 28,000 | 80,000 | |
| d) Other current assets | 16,000 | 8,000 | |
| Total | 6,48,000 | 3,68,000 | |
Notes to Accounts
| Particulars | 31st March 2017 (Rs) | 31st March 2016 (Rs) |
| 1. Share capital | ||
| a) Equity share capital | 3,00,000 | 2,00,000 |
| b) Preference share capital | 1,40,000 | 80,000 |
| 4,40,000 | 2,80,000 | |
| 2. Reserve and surplus | ||
| Surplus in statement of profit and loss at the beginning of the year | 28,000 | |
| Add: Profit of the year | 16,000 | |
| Less: Dividend | 4,000 | |
| Profit at the end of the year | 40,000 |
Additional Information:
1. Interest paid on Debenture Rs 600
2. Dividend paid during the year Rs 4,000
3. Depreciation charged during the year Rs 32,000
Cash Flow Statement (Indirect Method)
| Particulars | Amount (Rs.) | Amount (Rs.) | |
| A. | Cash Flow from Operating Activities | ||
| Profit as per Balance Sheet (40,000 – 28,000) | 12,000 | ||
| Proposed Dividend | 4,000 | ||
| Provision for Taxation | 12,000 | ||
| Net Profit before Taxation and Extraordinary items | 28,000 | ||
| Items to be added: | |||
| Interest paid on Debentures | 600 | ||
| Depreciation | 32,000 | 32,600 | |
| Operating Profit before Working Capital changes | 60,600 | ||
| Add: Increase in Current liabilities | |||
| Trade Payables | 1,00,000 | ||
| Less: Increase in Current Assets | |||
| Other Current Assets | (8,000) | ||
| Inventories | (1,00,000) | ||
| Trade Receivables | (60,000) | (68,000) | |
| Cash generated from Operating Activities | (7,400) | ||
| Less: Income Tax paid | (4,000) | ||
| Net Cash used in Operating Activities | (11,400) | ||
| B. | Cash Flow from Investing Activities | ||
| Purchase of Fixed Assets | (1,96,000) | ||
| Net Cash used in Investing Activities | (1,96,000) | ||
| C. | Cash Flow from Investing Activities | ||
| Issue of Equity Shares | 1,00,000 | ||
| Issue of Preference Shares | 60,000 | ||
| Less: Interest Paid on Debentures | (600) | ||
| Less: Dividend Paid | (4,000) | ||
| Net Cash from Financing Activities | 1,55,400 | ||
| D. | Net decrease in cash and cash equivalent (A+B+C) | (52,000) | |
| Add: Cash and Cash Equivalents in the beginning | 80,000 | ||
| E. | Cash and Cash Equivalents at the end | 28,000 |
Working Notes
| Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| Balance b/d | 2,00,000 | Depreciation | 32,000 | ||||
| Bank (Purchases- Balancing fig.) | 1,96,000 | Balance c/d | 3,64,000 | ||||
| 3,96,000 | 3,96,000 | ||||||
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