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Cash Flow Questions

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Bhakti Ghodke
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25 views6 pages

Cash Flow Questions

Uploaded by

Bhakti Ghodke
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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You have been provided with accounting information related to a XYZ ltd’s cash

account. You are required to prepare a cash flow statement for the year-ended
march 31st 2023. The company does not have any cash equivalents.
Cash account for the year ended 31.3 2023 (Rs ‘000)

Balance 1.4 2022 12200 Payment for supplies 215600


Issue of equity shares 22400 Fixed asset procurement 24860

Collection from customers 230000 Utilities expenses 3500

Fixed assets sale off 450 Salaries 1500

Taxation 1500

Dividend 1200

Loan repayment 1890

Balance as on 31.3. 2023 15000

TOTAL 265050 TOTAL 265050


Cash flows from operating activities
Cash from customers
Cash paid to suppliers
Cash paid as salaries
Cash paid for utilities expenses
Net cash from operations
Income tax paid
Net cash from operating activities
Cash from investing activities
Payments for purchase of fixed assets
Proceeds from sale of fixed assets
Net cash from investing activities
Cash from financing activities
Cash from issue of equity
Bank loan repaid
Dividend paid
Net cash from financing activities
Net increase in cash
Cash at the beginning of the year
Cash at the end of the year
Tutorial Exercise on identification of type of cash flow & Preparation of Cash Flow Statement
1. Proceeds from sale of goods and services to customers – Rs. 1,00,000
2. Receipts from sale of shares held in group companies – Rs. 50,00,000
3. Payment of salary - Rs. 100,00,000
4. Payment of dividend on shares – Rs. 5,00,000
5. Proceeds from issue of preference shares - Rs. 100,00,000
6. Payment of interest on loan - Rs. 10,00,000
7. Loan taken from bank - Rs. 75,00,000
8. Commission and Consultancy charges received – Rs. 20,00,000
9. Purchase of property - Rs. 200,00,000
10. Investment in Mutual Funds - 20,00,000
11. Advance given to supplier - 7,00,000
12. Fixed deposit maturity proceeds received – 25,00,000
OPENING CASH BALANCE OF RS. 500 LAKHS
CLOSING CASH BALANCE OF RS. 429 LAKHS
Cash flows from operating activities
Cash from customers 1,00,000
Cash paid to suppliers 7,00,000
Cash paid as salaries 100,00,000
Commission and consultancy charges received 20,00,000
Net cash from operating activities -86,00,000
Cash from investing activities
Payments for purchase of property 200,00,000
Proceeds from sale shares in group companies 50,00,000
Investment in Mutual Funds 20,00,000
Fixed Deposits net proceeds received 25,00,000
Net cash from investing activities -145,00,000
Cash from financing activities
Cash from issue of preference shares 100,00,000
Loan taken from bank 75,00,000
Int on loan 10,00,000
Dividend paid 5,00,000
Net cash from financing activities 160,00,000
Net increase in cash -71,00,000
Cash at the beginning of the year 50000000
Cash at the end of the year 42900000
Income Statement Data
2022 2023
Cost of Goods Sold 55,00,000
Wages & Salaries 3,00,000
Office Expenses 1,50,000
Selling Expenses 1,00,000
Bad Debts 5,000
Discount Given 15,000
Interest on Debentures 75,000
Depreciation 1,00,000
Loss on sale of Machinery 25,000
Goodwill written off 30,000
Preliminary Expenses 20,000
Payment for Income Tax 7,12,000
Proposed Dividends 5,00,000
NetProfit 5,68,000
Balance Sheet Data
Head 2022 2023
Creditors 8,75,000 9,80,000
Debtors 14,87,500 18,20,000
Bills Payables 1,75,000 1,05,000
Bills Receivables 2,80,000 3,50,000
Inventory 14,00,000 17,50,000
Rent outstanding 70,000 1,05,000
Office Expenses Outstanding 35,000 17,500
Selling Expenses Prepaid 1,40,000 52,500
Cash Available 2,45,000 4,20,000
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