From the following Balance Sheet of Computer India 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 | 50,000 | 40,000 | |
| b) Reserves and surplus-Surplus | 1 | 3,700 | 3,000 |
| 2. Non-Current Liabilities | |||
| 10% Debentures | 6,500 | 6,000 | |
| 3. Current Liabilities | |||
| a) Short-term borrowings | 2 | 6,800 | 12,500 |
| b) Trade payables | 11,000 | 12,000 | |
| c) Short-term provisions | 3 | 10,000 | 8,000 |
| Total | 88,000 | 81,500 | |
| II) Assets | |||
| 1. Non-current assets | |||
| a) Fixed assets | 4 | 25,000 | 30,000 |
| 2. Current assets | |||
| a) Inventories | 35,000 | 30,000 | |
| b) Trade receivables | 24,000 | 20,000 | |
| c) Cash and cash equivalents-cash | 3,500 | 1,200 | |
| d) Other current assets-prepaid exp. | 500 | 300 | |
| Total | 88,000 | 81,500 |
Notes to Accounts
| Particulars | 31st March 2017 (Rs) | 31st March 2016 (Rs) | |
| 1. | Reserve and surplus | ||
| (i) Balance in statement of profit and loss | 1,200 | 1,000 | |
| (ii) General reserve | 2,500 | 2,000 | |
| 3,700 | 3,000 | ||
| 2. | Short-term borrowings | ||
| Bank Overdraft | 6,800 | 12,500 | |
| 3. | Short-term provisions | ||
| (i) Provision for taxation | 4,200 | 3,000 | |
| (ii) Proposed dividend | 5,800 | 5,000 | |
| 10,000 | 8,000 | ||
| 4. | Fixed Assets: | ||
| Fixed Assets | 40,000 | 41,000 | |
| Less: Accumulated Depreciation | (15,000) | (11,000) | |
| 25,000 | 30,000 |
Additional Information:
Interest paid on Debenture Rs. 600
| Particulars | Amount (Rs.) | Amount (Rs.) | |
| A. | Cash Flow from Operating Activities | ||
| Profit as per Balance Sheet (1,200 – 1,000) | 200 | ||
| Proposed Dividend | 5,800 | ||
| General Reserve | 500 | ||
| Provision for Taxation | 4,200 | ||
| Net Profit before Tax and Extraordinary items | 10,700 | ||
| Items to be added | |||
| Provision for Depreciation | 4,000 | ||
| Interest paid on Debentures | 600 | 4,600 | |
| Operating Profit before Working Capital changes | 15,300 | ||
| Adjustments | |||
| Less:Increase in Current Assets | |||
| Trade Receivables | (4,000) | ||
| Inventories | (5,000) | ||
| Prepaid Expenses | (200) | (9,200) | |
| 6,100 | |||
| Less:Decrease in Current Liabilities | |||
| Trade Creditors | (1,000) | (1,000) | |
| Cash generated from Operating Activities | 5,100 | ||
| Less:Income Tax Paid | (3,000) | ||
| Net Cash from Operation | 2,100 | ||
| B. | Cash Flow from Investing Activities | ||
| Sale of Fixed Assets | 1,000 | ||
| Net Cash from Investing Activities | 1,000 | ||
| C. | Cash Flow from Financing Activities | ||
| Issue of Equity Shares | 10,000 | ||
| Issue of 10% Debentures | 500 | ||
| Less:Dividend paid | (5,000) | ||
| Less: Interest paid | (600) | ||
| Net Cash from Financing Activities | 4,900 | ||
| D. | Net Increase in Cash and Cash Equivalent (A+B+C) | 8,000 | |
| Add: Cash and Cash Equivalent in the beginning | |||
| Cash | 1,200 | ||
| Bank overdraft | (12,500) | (11,300) | |
| E. | Cash and Cash Equivalents at the end | ||
| Cash | 3,500 | ||
| Bank overdraft | (6,800) | (3,300) | |
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