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    Cashflow

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    Shubhankar Gupta
    1) Cash from operations for the year ending 31 December 2004 was Rs. 133,600. This was calculated by taking the profit of Rs. 130,000 and adjusting for increases and decreases in balance sheet items between 2003 and 2004. 2) The key assets and liabilities changed as follows: debtors decreased by Rs. 3,000, creditors increased by Rs. 5,000, outstanding expenses increased by Rs. 200, prepaid expenses decreased by Rs. 100. Bills receivable increased by Rs. 2,500, bills payable decreased by Rs. 2,000, and accrued income increased by Rs. 150. 3) After making these adjustments to the profit, the net cash from operations

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    Cashflow

    Uploaded by

    Shubhankar Gupta
    110 views8 pages
    1) Cash from operations for the year ending 31 December 2004 was Rs. 133,600. This was calculated by taking the profit of Rs. 130,000 and adjusting for increases and decreases in balance sheet items between 2003 and 2004. 2) The key assets and liabilities changed as follows: debtors decreased by Rs. 3,000, creditors increased by Rs. 5,000, outstanding expenses increased by Rs. 200, prepaid expenses decreased by Rs. 100. Bills receivable increased by Rs. 2,500, bills payable decreased by Rs. 2,000, and accrued income increased by Rs. 150. 3) After making these adjustments to the profit, the net cash from operations

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    1) Cash from operations for the year ending 31 December 2004 was Rs. 133,600. This was calculated by taking the profit of Rs. 130,000 and adjusting for increases and decreases in balance sheet items between 2003 and 2004. 2) The key assets and liabilities changed as follows: debtors decreased by Rs. 3,000, creditors increased by Rs. 5,000, outstanding expenses increased by Rs. 200, prepaid expenses decreased by Rs. 100. Bills receivable increased by Rs. 2,500, bills payable decreased by Rs. 2,000, and accrued income increased by Rs. 150. 3) After making these adjustments to the profit, the net cash from operations

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    110 views8 pages

    Cashflow

    Uploaded by

    Shubhankar Gupta
    1) Cash from operations for the year ending 31 December 2004 was Rs. 133,600. This was calculated by taking the profit of Rs. 130,000 and adjusting for increases and decreases in balance sheet items between 2003 and 2004. 2) The key assets and liabilities changed as follows: debtors decreased by Rs. 3,000, creditors increased by Rs. 5,000, outstanding expenses increased by Rs. 200, prepaid expenses decreased by Rs. 100. Bills receivable increased by Rs. 2,500, bills payable decreased by Rs. 2,000, and accrued income increased by Rs. 150. 3) After making these adjustments to the profit, the net cash from operations

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    From the following balances, calculate Cash from Operations:

    Cash Flow Matrix


    31st December
    Particulars
    2003 (Rs.) 2004(Rs.)
    Debtors 50,000 47,000 +3k
    Bills Receivable 10,000 12,500 -2.5k
    Creditors 20,000 25,000 +5k
    CA
    Bills Payable 8,000 6,000 -2k
    Outstanding Expenses 1,000 1,200 +200
    CL
    Prepaid Expenses 800 700 +100
    Accrued Income 600 750 -150
    Income received in Advance 300 250 -50
    Profit made during the year - 130,000

    In the Books of M/s _______________


    Cash Flow (Operations) Statement for the year ending 31 Dec `04
    Profit made during the year 130000
    Add:
    a. Decrease in Debtors 3,000
    b. Increase in Creditors 5,000
    c. Increase in Outstanding
    Expenses 200
    d. Decrease in Prepaid
    Expenses 100 8300

    Less:
    a. Increase in Bills Receivable (2,500)
    b. Decrease in Bills Payable (2,000)
    c. Increase in Accrued Income (150)
    d. Decrease in Income
    received in Advance (50) (4,700)

    Net Cash Flows from 133,600


    Operations during the year
    Cash Flow Matrix

    Cash Cash
    Decrease Increase

    Cash Cash
    Increase Decrease
    Statement of financial position of Mr. Arun is as given below:

    1st Jan 2008 31st Dec 1st Jan 2008 31st Dec
    LIABILITIES ASSETS
    (Rs.) 2008 (Rs.) (Rs.) 2008 (Rs.)
    Accounts Payable 29000 25000 Cash 40000 30000
    Capital 739000 615000 Debtors 20000 17000 +3k
    Stock 8000 13000 -5k
    Building 100000 80000 +20kDepn
    Other Fixed Assets 600000 500000 +100kDepn
    TOTAL 768000 640000 TOTAL 768000 640000

    Additional Information:
    1. There were no withdrawals
    2. There were no Purchases or Sales of either Building or Fixed Assets
    -4k

    +20kDepn
    +100kDepn
    Cash Flow Statement for the year ending 31 Dec 2007
    Amount Amount
    Particulars (Rs.) (Rs.)

    Cash Flows from Operating Activities:

    Funds from Operations (WN # 1) 88300


    Adjustments for:

    Decrease in Stock 46000

    Decrease in Debtors 15800

    Decrease in Creditors (14800)


    Tax Paid (28000)
    Net Cash Flows from Operating Activities 107300
    Cash Flows from Investing Activities:
    Sale of Machinery 1800
    Purchase of Machinery (8000)
    Net Cash used for Investing Activities (6200)

    Cash Flows from Financing Activities:


    Payment of Dividend (23000)
    Mortgage Loan repaid (70000)
    Net Cash used for Financing Activities (93000)

    Net Increase in Cash and Cash Equivalents 8100


    Cash and Cash Equivalents as on 1st Jan 2007 500

    Cash and Cash Equivalents as on 31st Dec 2007 8600


    (Cash Rs. 600 + Bank Rs. 8000)
    Working Notes
    Working Note # 1: Adjusted Profit and Loss Account
    Particulars Amount (Rs.) Particulars Amount (Rs.)

    By Balance b/d (2005


    To Dividend 23000 Profit) 30500

    By Funds from
    To Depreciation on Operations (Balancing
    Building 10000 Figure) 88300
    To Provision for Tax 33000
    To Transfer to General
    Reserve 10200
    To Depreciation on
    Machinery 12000
    To Balance c/d (2006
    Profit) 30600
    TOTAL 118800 TOTAL 118800
    Working Note # 2: Machinery Account
    Particulars Amount (Rs.) Particulars Amount (Rs.)
    To Balance b/d 150000 By Depreciation 12000
    To Share Capital 25000 By General Reserve 200
    To Bank 8000 By Bank 1800
    By Balance c/d 169000
    TOTAL 183000 TOTAL 183000

    Working Note # 3: General Reserve


    Particulars Amount (Rs.) Particulars Amount (Rs.)
    To Machinery A/c 200 By Balance b/d (2005) 50000
    To Balance c/d (2006) 60000 By Profit and Loss A/c 10200
    TOTAL 60200 TOTAL 60200

    Working Note # 3: Provision for Taxation


    Particulars Amount (Rs.) Particulars Amount (Rs.)
    To Bank 28000 By Balance b/d (2005) 30000
    To Balance c/d (2006) 35000 By Profit and Loss A/c 33000
    TOTAL 63000 TOTAL 63000

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