Worksheet of Cash Flow Statement

Chapter- Cash Flow Statement
Worksheet 1 - Operating Activities
Class – 12th
Certainly! Here are 10 questions related to preparing a cash flow statement from
operating activities using the indirect method, suitable for a class 12 level:
Question 1: Basic Indirect Method Calculation
ABC Ltd. reports the following for the year ending December 31, 2023:
- Net income: 50,000
- Depreciation expense: 10,000
- Increase in accounts receivable: 5,000
- Decrease in inventory: 2,000
- Increase in accounts payable: 3,000
Prepare a cash flow statement from operating activities using the indirect method
and calculate the net cash provided by operating activities.
Question 2: Adjustments for Non-Cash Items
XYZ Corp. has the following financial information for the year ending December
31, 2023:
- Amortization expense: 4,000
- Loss on sale of equipment: 2,000
- Gain on sale of investments: 1,000
- Decrease in prepaid expenses: 3,000
- Increase in accrued liabilities: 5,000

Prepare a cash flow statement from operating activities using the indirect
method. Show the adjustments for non-cash items.
Question 3: Working Capital Adjustments
DEF Ltd. has reported the following changes in working capital for the year ending
December 31, 2023:
- Decrease in inventory: 4,000
- Increase in prepaid expenses: 2,000
Using the indirect method, prepare the cash flow statement from operating
activities and calculate the net cash provided by operating activities.
Question 4: Complex Adjustments
GHI Ltd. provides the following information for the year ending December 31,
2023:
- Amortization of intangibles: 3,000
- Increase in inventory: 7,000
- Decrease in accounts payable: 5,000
- Gain on sale of fixed assets: 6,000
Prepare the cash flow statement from operating activities using the indirect
method. Explain how each adjustment impacts the cash flow.
Worksheet 2 - Operating Activities
Question 5: Detailed Working Capital Changes
JKL Corp. has the following changes in working capital for the year ending
December 31, 2023:
- Increase in accounts receivable 12,000
- Increase in accrued expenses: 3,000
method. Discuss the impact of working capital changes on cash flow.
Question 6: Non-Cash Transaction Impact
MNO Ltd. has the following data for the year ending December 31, 2023:
- Gain on sale of investments: 2,000
- Decrease in accounts receivable: 4,000

method. Highlight the effect of non-cash transactions.
Question 7: Cash Flow Analysis with Losses
PQR Ltd. reports the following for the year ending December 31, 2023:
Prepare a cash flow statement from operating activities using the indirect
method. Explain how the loss on sale of equipment is treated.
Question 8: Cash Flow with Multiple Adjustments
STU Inc. has the following information for the year ending December 31, 2023:
- Gain on sale of fixed assets: 4,000
- Decrease in prepaid expenses: 2,000
- Decrease in accrued liabilities: 3,000
method and describe how each adjustment affects the cash flow.
Question 9: Comprehensive Adjustments
VWX Ltd. provides the following information for the year ending December 31,
2023:
- Amortization of patents: 2,000
- Gain on sale of equipment: 5,000
Using the indirect method, prepare the cash flow statement from operating
activities and explain the treatment of amortization and gains on sales.
Question 10: Comparative Cash Flow Analysis
LMN Corp. reports the following for the years ending December 31, 2022 and
2023:
- 2023 Net income 95,000, Depreciation 14,000, Increase in accounts receivable

10,000, Increase in inventory 4,000, Increase in accounts payable $5,000
- 2022: Net income 85,000, Depreciation 12,000, Increase in accounts receivable

8,000, Decrease in inventory 2,000, Increase in accounts payable 3,000
Prepare the cash flow statement from operating activities for both years using the
indirect method. Compare the changes in cash flow from operating activities
between the two years and explain the differences.
Worksheet 1 – Investment Activities
Questions:
1. Define cash flow from investing activities and provide an example.

2. ABC Ltd. purchased equipment for 50,000 and sold a piece of land for 20,000.
Calculate the net cash flow from investing activities.
3. A company received 15,000 from the sale of machinery and paid 10,000 for
purchasing new computers. What is the net cash flow from investing activities?
4. During the year, XYZ Ltd. bought a building for 100,000 and sold old furniture for
5,000. Calculate the net cash flow from investing activities.
5. If a company invested 40,000 in buying a new plant and machinery and received
12,000 from the sale of its old plant, what is the net cash flow from investing
activities?
6. A firm purchased new patents for 25,000 and sold an investment for 8,000.
Determine the net cash flow from investing activities.
7. Company P purchased shares of another company worth 30,000 and received 18,000
from selling some of its fixed assets. What is the net cash flow from investing
activities?
8. S Ltd. bought land worth 70,000 and sold an old building for 30,000. Compute the
net cash flow from investing activities.
9. The company spent 60,000 on buying new machinery and received 22,000 from
selling its old machinery. Calculate the net cash flow from investing activities.
10. A business purchased a vehicle for 15,000 and sold an old machine for $5,000.
Determine the net cash flow from investing activities.
Worksheet 3 - Financing Activities
Questions:
1. Define financing activities in the context of a cash flow statement.

2. A company issued 1,000 shares at 10 each and received a loan of 50,000. Calculate
the total cash inflow from financing activities.
3. If a company repaid a long-term debt of 20,000 and paid dividends amounting to
5,000, what is the total cash outflow from financing activities?
4. During the year, a firm borrowed 25,000 and repaid 10,000 of its existing debt.
What is the net cash flow from financing activities?
5. Calculate the cash inflow from financing activities given the following:
o Issued bonds for 15,000
o Purchased treasury stock for 3,000
o Received 10,000 from issuing common stock
6. A company received $40,000 from issuing new equity shares and paid off $25,000 in
long-term debt. What is the net cash flow from financing activities?
7. Determine the cash flow from financing activities given:
o Paid dividends of 8,000
o Issued new shares worth 12,000
o Borrowed 10,000 from a bank
8. If a company repurchased its own shares worth 7,000 and received a loan of 12,000,
what is the net cash flow from financing activities?
9. Calculate the cash flow from financing activities with the following transactions:
o Issued bonds for 50,000
o Paid dividends amounting to 6,000
o Repaid a short-term loan of 10,000
10. A firm paid 15,000 in dividends and received 25,000 from issuing new shares. What
is the net cash flow from financing activities?

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Chapter- Cash Flow Statement

Worksheet 1 - Operating Activities

Question 1: Basic Indirect Method Calculation

- Net income: 50,000

- Depreciation expense: 10,000

- Increase in accounts receivable: 5,000

- Decrease in inventory: 2,000

- Increase in accounts payable: 3,000

Question 2: Adjustments for Non-Cash Items

- Net income: 75,000

- Amortization expense: 4,000

- Loss on sale of equipment: 2,000

- Gain on sale of investments: 1,000

- Decrease in prepaid expenses: 3,000

- Increase in accrued liabilities: 5,000

Question 3: Working Capital Adjustments

- Net income: 100,000

- Increase in accounts receivable: 8,000

- Increase in accounts payable: 6,000

- Decrease in inventory: 4,000

- Increase in prepaid expenses: 2,000

- Depreciation expense: 12,000

Question 4: Complex Adjustments

- Net income: 120,000

- Depreciation expense: 15,000

- Amortization of intangibles: 3,000

- Increase in accounts receivable: 10,000

- Increase in inventory: 7,000

- Decrease in accounts payable: 5,000

- Gain on sale of fixed assets: 6,000

Question 5: Detailed Working Capital Changes

- Net income: 90,000

- Increase in accounts receivable 12,000

- Increase in inventory: 5,000

- Decrease in accounts payable: 4,000

- Increase in accrued expenses: 3,000

- Depreciation expense: 8,000

Question 6: Non-Cash Transaction Impact

- Net income: 60,000

- Depreciation expense: 9,000

- Loss on sale of equipment: 1,500

- Gain on sale of investments: 2,000

- Decrease in accounts receivable: 4,000

- Increase in inventory: 6,000

- Increase in accounts payable: 3,000

Question 7: Cash Flow Analysis with Losses

- Net income: 140,000

- Depreciation expense: 20,000

- Loss on sale of equipment: 2,500

- Increase in accounts receivable: 15,000

- Increase in inventory: 7,000

- Decrease in accounts payable: 10,000

Question 8: Cash Flow with Multiple Adjustments

- Net income: 85,000

- Depreciation expense: 11,000

- Gain on sale of fixed assets: 4,000

- Increase in accounts receivable: 9,000

- Decrease in prepaid expenses: 2,000

- Increase in accounts payable: 7,000

- Decrease in accrued liabilities: 3,000