Cash flow from operating activities: (Rs in lakhs)

Net profit before taxation (25000+5000) 30,000

Adjustmnet for:
Depreciation 20,000
Loss on sale of assets (net) 40
Amoristation of capital grant (6)
Profit on sale of investments (100)
Intrest income on investments (2,506)
Intrest expense 10,000
Operating profit before working capital changes 57,428
Change in working capital (excluding cash and bank balance) (56,075)
cash generated by operations 1,353
Income tax paid (4,248)
Net cash used in operating activities (2,895)
Cash flow from investing activities
sale of assets (185-40) 145
sale of investmnents (27765+100) 27,865
Intrest income on investments 2,506
Purchase of fixed assets (14,560)
Investment of joint venture (3,850)
expenditure on construction (work in progress) (34,740)
Net cash used in investing activities (22,634)
Cash flows from financial activities
Proceeds from calls in arrear 2 Date
Recipts of grants for capital projects 12
Proceeds from long-term borrowings 25,980 31-Jan
Proceeds from short-term borrowings 20,575
Interest paid (10,520)
Dividends (including dividend tax paid) (8,535) 31-Jan
Net cash provided by financing activities 27,514
Net increase in cash and cash equivalents 1,985
Add: cash and cash equivalent at the beginning of period 5,003 31-Jan
Cash and cash eqivalent at the end of period 6,988

31-Jan

31-Jan

31-Jan
Cash and Equivalents
$119,115
$119,115

Accounts Receivable
$162,500
$162,500

Store equipment
$215,000
$215,000
Merchandise inventory
$700,680 $315,990
$384,690

Supplies Inventory
$15,475 $10,225(3)
$5,250

Prepaid Insurance
$38,250
$38,250

Selling Expense
$24,900
$24,900(a)

Sales Salaries
$105,750
$3,575(5) $109,325(b)

Cost of Goods Sold

$315,990(1)
$315,990(h)

Depreciation Expense
$10,750(2)
$10,750(i)

Supplies Expense
$10,225(3)
$10,225(j)

Accrued Interest
$3,730(4)
$3,750

Accrued Sales Salaries

$3,575(5)
$3,575
 Interest Receivable
$410(6)
$410

Interest Income

$410(6)

$410(l)

Miscellaneous General Expense

$31,000

$31,000(c)

Sales Discount
$6,220
$6,220(d)

Interest Expense
$9,300
$3,730(4) $13,030(e)

Social Security Taxes

$9,600
$9,600(f)

Accumulated Depreciation
$37,300
$10,750(2)
$48,050

Accounts Payable
$118,180
$118,180

Notes Payable
 $143,000
$143,000

Common Stock
$300,000
$300,000

Retained Earning
$122,375
$192,585(m
)
$314,960

Sales
$707,635
$707,635(g)

Profit and Loss

$24,900(a) $707,635
$109,325(b) $410
$31,000(c)
$6,220(d)
$13,030(e)
$9,600(f)
$315,990(h)
$10,750(i)
$10,225(j)
$192,585(m)
Account title Debit $ Credit $

Cash and equivalents 119,115

Accounts receivable 162,500
Merchandise inventory 700,680
Store equipment 215,000
Supplies inventory 15,475
Prepaid insurance 38,250
Selling expense 24,900
Sales salaries 105,750
Miscellaneous general expenses 31,000
Sales discounts 6,220
Social security tax expense 9,600

Accumulated depretiation on store equipment 37,300

Accounts payable 118,180
Notes payable 143,000
Common stock 300,000
Retained earnings 122,375
Sales revenues 707,635

Account title Debit $ Credit $

Cost of good sold 315,990

Merchandise inventory 315,990

Depreciation store equipment 10,750

Accumulated depretiation on store equipment 10,750

Supplies expense 10,225

Supplies inventory 10,225

Intrest expense 3,730

Intrest payable 3,730

Sales salaries 3,575

Sales payable 3,575

Intrest recivable 410

Intrest income 410

Adjusted trial balence

Cash and equivalents 119115
Accounts receivable 162500
Merchandise inventory 384690
Store equipment 215000
Supplies inventory 5250
Prepaid insurance 38250
Selling expense 24900
Sales salaries 109325
Miscellaneous general expenses 31000
Sales discounts 6220
Social security tax expense 9600
Cost of Goods Sold (COGS) 315990

Depreciation store equipment 10750

Supplies expense 10225
Intrest expense 3730
Intrest reciable 410
common stock 300000
Accumulated depretiation on store equipment 48050
Accounts payable 118180
Notes payable 143000
Common stock 122375
Retained earnings 707635
Sales revenues 3730
Intrest payable 3575
salary payable 410
intrest income 1446955 1446955

Adjusting Entries are:

1)    Cost of goods sold 315,990
Merchandise Inventory 315,990

2)    Depreciation Expense 10,750

Accumulated Depreciation 10,750

3)    Supplies Expense 10,225

Supplies Inventory 10,225
4)    Interest Expense 3,730
Accrued Expense 3,730

5)    Sales Salaries 3,575

Accrued Sales Salaries 3,575

6)    Interest Receivable 410

Interest Income 410

Closing Entries are:

a)     Profit and Loss 24,900
Selling Expense 24,900

b)    Profit and Loss 109,325

Sale Salaries 109,325

c)     Profit and Loss 31,000

Miscellaneous General expense 31,000

d)    Profit and Loss 6,220

Sales Discount 6,220

e)     Profit and Loss 13,030

Interest Expense 13,030

f)     Profit and Loss 9,600

Social Security Taxes 9,600

g)    Sales 707,635

Profit and Loss 707,635

h)    Profit and Loss 315,990

Cost of goods sold 315,990

i)      Profit and Loss 10,750

Depreciation Expense 10,750
 Jackson Company
Balance Sheet as of January 31, ----
Assets Amount Liabilities Amount

Accounts
Cash and cash Equivalents 119,115 118,180
payable

Accrued
Accounts receivable 162,500 3,370
interest

Accrued Sales
Merchandise inventory 384,690 3,575
salaries

Suppliers inventory 5,250 Note payable 143,000

Common
Prepaid insurance 38,250 300,000
stock
Retained
Interest receivable 410 298,560
earning
Store equipment 215,000
Accumulated depreciation -48,050
877,165 877,165

Income Statemnet
sales revenue 707635
sales discount -6220
net sales 701415
Cost of goods sold -315990
gross profit 385425
Less Operating expense
selling expense -24900
sales expense -109325
miscellanous general expense -31000
social security tax expense -9600
depreciation store equipment -10750
supplies expense -10225
intrest expense -3730
-199530
operating income 185895
other revenue
intrest income 410
net profit 186305

Balance sheet

Current assets
Cash and equivalents 119115
Accounts receivable 162500
Merchandise inventory 384690
Store equipment 215000
Supplies inventory 5250
Prepaid insurance 38250
710215
Fixed assets
store equipmet 215000
accumulated depriciation -48050 166950
Total assets 877165

current liabilities