8. From the following Balance Sheets of Tiger Super Steel Ltd., prepare Cash Flow Statement:
Balance Sheet of Tiger Super Steel Ltd.
as at 31st March 2014 and 31st March 2017
| Particulars | Note No. | March 31, 2017 (Rs) | March 31, 2016 (Rs) |
| I) Equity and Liabilities | |||
| 1. Shareholders’ Funds | |||
| a) Share capital | 1 | 1,40,000 | 1,20,000 |
| b) Reserves and surplus | 2 | 22,800 | 15,200 |
| 2. Current Liabilities | |||
| a) Trade payables | 3 | 21,200 | 14,000 |
| b) Other current liabilities | 4 | 2,400 | 3,200 |
| c) Short-term provisions | 5 | 28,400 | 22,400 |
| Total | 2,14,800 | 1,74,800 | |
| II) Assets | |||
| 1. Non-Current Assets | |||
| a) Fixed assets | |||
| i) Tangible assets | 6 | 96,400 | 76,000 |
| ii) Intangible assets | 18,800 | 24,000 | |
| b) Non-current investments | 14,000 | 4,000 | |
| 2. Current Assets | |||
| a) Inventories | 31,200 | 34,000 | |
| b) Trade receivables | 43,200 | 30,000 | |
| c) Cash and Cash Equivalents | 11,200 | 6,800 | |
| Total | 2,14,800 | 1,74,800 |
Notes to accounts:
| 2017 | 2016 | |
| 1. Share Capital | ||
| Equity share capital | 1,20,000 | 80,000 |
| 10% Preference share capital | 20,000 | 40,000 |
| 1,40,000 | 1,20,000 | |
| 2. Reserves and surplus | ||
| General reserve | 12,000 | 8,000 |
| Balance in statement of profit and loss | 10,800 | 7,200 |
| 22,800 | 15,200 | |
| 3. Trade payables | ||
| Bills payable | 21,200 | 14,000 |
| 4. Other current liabilities | ||
| Outstanding expenses | 2,400 | 3,200 |
| 5. Short-term provisions | ||
| Provision for taxation | 12,800 | 11,200 |
| Proposed dividend | 15,600 | 11,200 |
| 28,400 | 22,400 | |
| 6. Tangible assets | ||
| Land and building | 20,000 | 40,000 |
| Plant | 76,400 | 36,000 |
| 96,400 | 76,000 |
Additional Information:
Depreciation Charge on Land & Building Rs 20,000, and Plant Rs 10,000 during the year.
Cash Flow Statement
of Tiger Super Steels Ltd
| Particulars | Amount (Rs.) | Amount (Rs.) | |
| A. | Cash Flow from Operating Activities | ||
| Profit as per the Balance Sheet (10,800 –7,200) | 3,600 | ||
| General Reserve | 4,000 | ||
| Proposed Dividend | 15,600 | ||
| Provision for Taxation | 12,800 | ||
| Net Profit before Taxation and Extraordinary | 36,000 | ||
| Items to be added: | |||
| Depreciation on Land and Building | 20,000 | ||
| Depreciation on Plant | 10,000 | ||
| Goodwill written off | 5,200 | 35,200 | |
| Operating Profit before Working Capital changes | 71,200 | ||
| Add:Increase in Current Liabilities | |||
| Bills Payable | 7,200 | ||
| Add:Decrease in Current Assets | |||
| Inventories | 2,800 | 10,000 | |
| 81,200 | |||
| Less: Increase in Current Assets | |||
| Trade Receivables | (13,200) | ||
| Less:Decrease in Current Liabilities | |||
| Outstanding Expenses | (800) | (14,000) | |
| Cash Generated from Operating Activities | 67,200 | ||
| Less:Income Tax paid | (11,200) | ||
| Net Cash from Operating Activities | 56,000 | ||
| B. | Cash Flow from Investing Activities | ||
| Purchases of Plant | (40,400) | ||
| Purchases of Investment | (20,000) | ||
| Net Cash used in Investing Activities | (60,400) | ||
| C. | Cash Flow from Financing Activities | ||
| Issue of Equity Shares | 40,000 | ||
| Dividend paid | (11,200) | ||
| Redemption of 10% Preference Shares | (20,000) | ||
| Net Cash from Financing Activities | 8,800 | ||
| D. | Net Increase in Cash and Cash Equivalent | 4,400 | |
| Add: Cash and Cash Equivalent in the beginning | 6,800 | ||
| E. | Cash and Cash Equivalents at the end | 11,200 | |
Working Notes
1.
Plant Account
| Date | Particulars | J.F. | Amount (Rs.) | Date | Particulars | J.F. | Amount (Rs.) |
| To Balance b/d | 36,000 | By Depreciation | 10,000 | ||||
| To Bank A/c (Purchases- Balancing figure) | 50,400 | By Balance c/d | 76,400 | ||||
| 86,400 | 86,400 |
2.
| Net Profit before Tax | 3,600 |
| Profit and Loss Account | 12,800 |
| Less:Provision for Tax | 16,400 |
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