Exercises on Cash Flow Statement

Q1. From the following information, calculate Cash Flow from Operating Activities:

Profit after Tax 85000

Provision for Taxation 15000
Loss on sale of Machine 20000
Depreciation on Fixed Assets 12500
Amortization of Goodwill 8000
Decrease in Trade Receivables 22800
Decrease in Trade Payable 4700
Outstanding Expenses on 1.4.2008 5000
Outstanding Expenses on 31.3.2009 6500
Prepaid Expenses on 1.4.2008 4000
Prepaid Expenses on 31.3.2009 2000

Q 2. Calculate Cash Flow from Operating Activities from the following information:

Profit after Tax 60000

Profit on sale of Furniture 5000
Loss on sale of machine 10000
Amortization of Goodwill 10000
Depreciation Provided 20000

Additional Information:
Particulars 2008 2009
Trade Receivables 10000 15000
Other Current Assets 7000 5000
Stock 15000 18000
Prepaid Expenses 2000 3000
Other Current Liabilities 20000 18000
Trade payable 15000 25000
Outstanding Expenses 3000 4000

Q 3. Calculate Cash Flow from Operating Activities from the following:

(i) Profit after Tax during the year is Rs 257000 after considering the following items:
Depreciation of Fixed Assets 10000
Amortization of Goodwill 5000
Profit on sale of Land 3000

(ii) The following is the position of current assets and current liabilities:
Particulars 2009 2008
Trade Receivables 15000 12000
Trade payable 10000 15000
Other Current Assets 8000 10000
Prepaid Expenses 4000 6000
Q4. Calculate Cash flow from Operating Activities from the following information by Indirect
Method:

Profit before Interest & Tax 1256000

Depreciation 280000
Loss on sale of Machinery 60000
Profit on sale of Investment 35000
Dividend received on Investment 30000
Decrease in Current Assets (other than cash & Cash equivalents) 20000
Increase in Current Liabilities 302000
Increase in Current Assets (other than cash & Cash equivalents) 600000
Decrease in Current Liabilities 128000
Income Tax Paid 23600

Q5. From the following information, prepare a Cash Flow Statement for the year ended March 31,
2008:

Opening Cash Balance 10000

Closing Cash Balance 12000
Decrease in Receivables 5000
Increase in Payables 7000
Sale of Fixed Assets 20000
Redemption of Debentures 50000
Profit before Tax 20000

Q6. From the following information, calculate Cash Flow from Operating Activities:

Profit after Tax 170000

Provision for Taxation 25000
Interest Received 15000
Loss on sale of Machine 20000
Depreciation on Fixed Assets 32500
Amortization of Goodwill 18000
Decrease in Trade Receivables 22800
Decrease in Trade Payable 4700
Outstanding Expenses on 1.4.2013 5000
Outstanding Expenses on 31.3.2014 6500
Prepaid Expenses on 1.4.2013 4000
Prepaid Expenses on 31.3.2014 2000

Q7. Calculate Cash flow from Operating Activities from the following information by Indirect
Method:

Profit after Tax 1490000

Depreciation 288000
Loss on sale of Machinery 55000
Profit on sale of Investment 35000
Dividend received on Investment 35000
Decrease in Current Assets (other than cash & Cash equivalents) 20000
Increase in Current Liabilities 302000
Increase in Current Assets (other than cash & Cash equivalents) 600000
Decrease in Current Liabilities 128000
Income Tax Provision 21000
Q8. Calculate Cash Flow from Operating Activities from the following information:

Profits after Tax during the year 120000

Profit on sale of Furniture 5000
Dividend Received 5600
Loss on sale of machine 20000
Amortization of Goodwill 15000
Depreciation Provided 20000

Additional Information:
Particulars 2008 2009
Trade Receivables 10000 25000
Other Current Assets 10000 5000
Stock 15000 10000
Prepaid Expenses 12000 3000
Other Current Liabilities 20000 15000
Trade payable 15000 25000
Outstanding Expenses 3000 10000

Q 9. Calculate Cash Flow from Operating Activities from the following:

(i) Profit after Tax during the year is Rs 285000 after considering the following items:
Depreciation of Fixed Assets 10000
Amortization of Goodwill 5000
Profit on sale of Land 3000
Loss on sale of Investments 6800
(ii) The following is the position of current assets and current liabilities:
Particulars 2012 2013
Trade Receivables 20000 12000
Trade payable 10000 5000
Other Current Assets 18000 10000
Prepaid Expenses 4000 8000

Q10. From the following information, calculate Cash Flow from Operating Activities:

Profit after Tax 180000

Provision for Taxation 35000
Interest Received 12500
Loss on sale of Machine 18500
Depreciation on Fixed Assets 23500
Amortization of Goodwill 17500
Decrease in Trade Receivables 32000
Increase in Trade Payable 5700
Increase in stock 5000
Increase in Prepaid Expenses 6500
Increase in Short Term Bank Loan 4000
Increase in Outstanding Expenses 2000
Q 11. Prepare a Cash Flow Statement from the following:

Liabilities 2008 2009 Assets 2008 2009

Share Capital 400000 500000 Machinery 500000 700000
Profit and Loss Account 235000 325000 Long Term Investment 70000 56000
Debentures 200000 150000 Stock 210000 280000
Long Term Bank Loan 100000 160000 Trade Receivables 140000 114000
Trade payable 80000 95000 Cash 20000 40000
Bank 50000 20000
Goodwill 25000 20000
1015000 1230000 1015000 1230000

Q 12. Prepare a Cash Flow Statement from the following:

Liabilities 2008 2009 Assets 2008 2009

Equity Share Capital 300000 400000 Goodwill 63000 47000
Profit & Loss a/c 50000 60000 Plant 172000 296000
Bank Loan(Long Term) 100000 130000 Inventories 200000 280000
Public Deposits(Long Term) 70000 10000 Trade Receivables 120000 92000
Trade Payables 105000 140000 Prepaid Insurance 10000 15000
Outstanding Expenses 20000 8000 Cash 50000 16000
Bank 30000 2000
645000 748000 645000 748000

Q 13. Prepare a Cash Flow Statement from the following:

Liabilities 2008 2009 Assets 2008 2009

Equity Share Capital 250000 280000 Goodwill 80000 42000
Debentures 30000 - Land & Building 200000 50000
Profit & Loss a/c 140000 192000 Plant & Machinery 150000 315000
Trade Payables 198000 113000 Investment(Long term) 62000 30000
Outstanding Expenses - 10000 Stock 120000 80000
Bank Overdraft 70000 40000 Trade Receivables 66000 100000
Cash 10000 18000
Total 688000 635000 Total 688000 635000

Q 14. The financial position of ABC Ltd as on 31st March was as follows:

Liabilities 1997(Rs) 1998(Rs) Assets 1997(Rs) 1998(Rs)

Equity Share 250000 290000 Goodwill 30000 20000
P&L A/c 50000 72000 Building 100000 80000
Trade Payables 23000 5000 Plant 40000 70000
Trade Receivables 120000 160000
Stock 18000 20000
Cash 15000 17000
Total 323000 367000 Total 323000 367000
Q 15. From the following particulars of Sigma Ltd, prepare Cash Flow Statement:

Liabilities 2005 2006 Assets 2005 2006

Equity Share Capital 300000 350000 Fixed Assets 510000 620000
Preference Share 200000 100000 Investments 30000 80000
Debentures 100000 200000 Cash in Hand 20000 35000
Profit & Loss a/c 120000 285000 Cash at Bank 20000 40000
Payables 70000 145000 Trade Receivables 100000 200000
Stock 100000 90000
Prepaid Expenses 10000 15000
Total 790000 1080000 Total 790000 1080000