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    Cash Flow Statement Exercise Compass Company Balance Sheet, March 31

    Uploaded by

    Rajiv Kumar
    The document provides balance sheet and profit and loss statement information for Compass Company for the years ending March 31, 20X5 and 20X4. According to the balance sheet, total assets increased from Rs. 7,22,000 to Rs. 8,62,000 from 20X4 to 20X5. Net profit for 20X5 was Rs. 43,000, up from Rs. 53,000 in 20X4. Additional information is provided on various cash inflows and outflows during the year, including purchases and sales of plant assets, investments, and debt repayments and issuances.

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    Cash Flow Statement Exercise Compass Company Balance Sheet, March 31

    Uploaded by

    Rajiv Kumar
    153 views2 pages
    The document provides balance sheet and profit and loss statement information for Compass Company for the years ending March 31, 20X5 and 20X4. According to the balance sheet, total assets increased from Rs. 7,22,000 to Rs. 8,62,000 from 20X4 to 20X5. Net profit for 20X5 was Rs. 43,000, up from Rs. 53,000 in 20X4. Additional information is provided on various cash inflows and outflows during the year, including purchases and sales of plant assets, investments, and debt repayments and issuances.

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    Compass company case

    Original Title

    COMPASS COMPANY

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    The document provides balance sheet and profit and loss statement information for Compass Company for the years ending March 31, 20X5 and 20X4. According to the balance sheet, total assets increased from Rs. 7,22,000 to Rs. 8,62,000 from 20X4 to 20X5. Net profit for 20X5 was Rs. 43,000, up from Rs. 53,000 in 20X4. Additional information is provided on various cash inflows and outflows during the year, including purchases and sales of plant assets, investments, and debt repayments and issuances.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    153 views2 pages

    Cash Flow Statement Exercise Compass Company Balance Sheet, March 31

    Uploaded by

    Rajiv Kumar
    The document provides balance sheet and profit and loss statement information for Compass Company for the years ending March 31, 20X5 and 20X4. According to the balance sheet, total assets increased from Rs. 7,22,000 to Rs. 8,62,000 from 20X4 to 20X5. Net profit for 20X5 was Rs. 43,000, up from Rs. 53,000 in 20X4. Additional information is provided on various cash inflows and outflows during the year, including purchases and sales of plant assets, investments, and debt repayments and issuances.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    CASH FLOW STATEMENT EXERCISE

    COMPASS COMPANY
    BALANCE SHEET, March 31

    20X5 20X4
    Sources of Funds
    Shareholders Funds
    Equity Capital Rs. 3,50,000 Rs. 2,00,000
    Profit and Loss Account 71,000 53,000
    Loan Funds
    Secured Loans 60,000 1,37,000
    Unsecured Loans 1,67,000 1,19,000
    Current Liabilities
    Bills Payable 81,000 73,000
    Creditors 98,000 1,20,000
    Income Tax payable 35,000 20,000
    Total Current Liabilities 2,14,000 2,13,000
    Total Liabilities 8,62,000 7,22,000

    Application of Funds
    Fixed Assets
    Plant and Machinery, Cost Rs. 9,73,000 Rs. 8,18,000
    Less Accumulated Depreciation 5,52,000 5,05,000
    Fixed Assets, Net 4,21,000 3,13,000
    Investments 1,17,000 1,42,000
    Current Assets
    Inventories 1,76,000 1,18,000
    Debtors (less provisions for Doubtful 1,25,000 93,000
    Debts Rs. 9000 and Rs. 7000)
    Prepaid Expense 3000 5000
    Cash and Cash Equivalents 20,000 51,000
    Total Current Assets 3,24,000 2,67,000

    Total Assets 8,62,000 7,22,000


    Profit and Loss Account for the Year ended March 31, 20X5

    Sales Rs. 9,25,000


    Interest Income 7,000
    Gain on sale of plant and machinery 6,000
    Rs. 9,38,000
    Cost of Goods Sold1 6,69,000
    Depreciation Expense 98,000
    Selling and Administrative Expense 70,000
    Interest Expense 22,000
    Loss on Sale of Investments 9,000

    Profit before Income tax and extraordinary 70,000


    item
    Income Tax 30,000
    Profit before extraordinary item 40,000
    Extraordinary item: Insurance proceeds from 3,000
    Earthquake loss claim
    Net Profit 43,000

    Additional Information:

    1. Purchased machinery costing Rs. 1,73,000


    2. Sold machinery with cost of Rs. 67,000 and accumulated depreciation of Rs. 51,000 for
    Rs. 22,000
    3. Purchased investments for Rs. 26,000
    4. Sold investments costing Rs. 51,000 for Rs. 42,000
    5. Purchased machinery for Rs. 49,000 on unsecured credit
    6. Issued at par shares for Rs. 1,00,000
    7. Converted secured debentures of Rs. 50,000 to equity shares of Rs. 10 at par
    8. Paid dividends of Rs. 25,000
    9. Repaid unsecured loans of Rs. 1000
    10. Redeemed secured debentures of Rs. 27,000 at par
    11. Wrote off Rs. 10,000 of debtors when a customer being insolvent and provided Rs.
    12,000 for doubtful debts, included in Selling and Administrative Expenses
    12. Received Rs. 3000 from an insurance claim for loss suffered in an earthquake

    1
    COGS includes cost of materials consumed, salaries and other manufacturing expenses

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