NOY \) " CASH FLOW AND FUND FLOW STATEMENT lustration 1 From the following Balance Sheet of PKJ Lid., Prepare Funds Flow Statement for 2016. { ‘000) li 3s 31-3-15 31-3-16 Assets 31-3-15 313-16 Equily Share 50 200 Goodwill 50 40 Capital o% 75 30 Land & 100 85 Redeemable Buildings Preference Share capital Capital = 10 Plant & 40 100 Reserve Machinery General 20 2 Investments 10 15 Reserve Profit & Loss 15 2 Sundry 70 85 ‘Account Debtors Proposed 2 2 Stock a 35 Dividend ‘Sundry 13 24 Bills 10 15 Creditors Receivable Bills Payable: 10 & ‘Cash in hand Z 5 Uabilty — for 15 18 Cash af bank 5 4 Expenses Provision _ for 20 2 Preliminary e 5 tox Exp, 339) 407 339) 409 Additional information: 1. A part of land was sold out in 2016, and the profit was credited to Capilal Reserve. 2. A machine has been sold for °5,000 (written down value of the machinery was °6,000). Depreciation of °5,000 was charged on plant in 2016. 3. An interim dividend of “10,000 has been pai in 2016 4, An Amount of “1,000 has been received as dividend on investment in 2016. llustration 2 The Balance Sheets of A, B, & C Co, Ltd, as at the end of 2015 and 2016 are given below: ABILITIES 2015 () 2016 () ‘ASSETS 2015) 2016 () Share Capital 1,00,000 1,50,000 | Freehold land 1,00,000 00,000 Share = 5,000 | Plant at cost 1,04,000 00,000 premium General ‘50,000 60,000 | Furniture af 7,000 7,000 Reserve cost Profit, & Loss 10,000 17,000 | investments 0,000 80,000 Account, 6% 70,000 50,000 | Debtors 30,000 70,000 Debentures Provision — for ‘50,000 56,000 | Stock 60,000 65,000 Depreciation on Plant) Provision for 5,000 000 | Cash 30,000 45,000 Dep. ‘on FurnitureProvision toxation ‘Sundry Cregitors tor 469,000 3.91,000 469,000, A plant purchased for * 4,000 (Depreciation * 2,000) was sold for Cash for “800 on September 30, 2015. On June 30, 2015 an item of fumiture was purchased for * 2,000. These were the only transactions concerning fixed assets during 2015. A dividend of 22% % on original shares was paid. You are required to prepare funds Flow Statement and verify the results by preparing a schedule of changes in Working Capital. Mustration 3 From the Balance Sheet of A Ltd., Please prepare: A. A Statement of changes in the Working Capital. B. Funds Flow Statement. BALANCE SHEET ‘3ist March ‘ist March LIABILITIES 2015 (') 2016 [) ‘ASSETS 2015 ()) 2016 () Equity “Share 3,00,000 4,00,000 | Goodwill 1,15,000 970,000 Capital 8% Preference 7,50,000 1,00,000 | Land & 2,00,000 1,70,000 share capital Buildings P&LA/c 30,000 48,000 | Plant 80,000 2,00,000 General 40,000 70,000 | Debtors 1,60,000 200,000 Reserve Proposed 42,000 50,000 | Stock 77,000 1,09,000 Dividend Creditors 55,000 83,000 | Bills 20,000 30,000 Receivable Bils Payable 20,000 16000 | Cashin hand 15,000 19,000 Provision for 40,000 50,000 | Cash af Bank 10,000 8,000 Taxation 77,000 | 17,000 77,000 17,000 Following is the additional information available: {i) Depreciation of * 10,000 and * 20,000 have been charged on Plant and Land and Buildings respectively in 2016. {i Interim dividend of * 20,000 has been paid in 2016. (ii) Income tax of * 35,000 has been paid in 2016, Ilustration 4 From the following figures, prepare a statement showing the changes in the Working Capital and Funds Flow Statement during the year 2015. ASE Dec.31, 2014 Dec.31, 2015 ] Fixed Assets [nei] ~ 5,10,000 620,000 Investments 30,000 80,000 ‘Current Assets 240,000 375,000 Discount on debentures 10,000 5,000 790,000 10,80,000 Liabilities Equily share capital 3,00,000 350,000 Preference share capital 2,00,000) 1,00,000 |Debentures Reserves Provision for doubiful debis ‘Current Liabilfies You are informed that during the year: {a} A machine costing * 70,000 book value * 40,000 was disposed of for * 25,000. (b) Preference share redemption was carried out at a premium of 5% and {c) Dividend at 15% was paid on equity shares for the year 2014 Further: 1. The provision for depreciation stood at * 1,50,000 on 31.12.14 and at 1,90,000 on 31.12.15; and 2. Stock which was valued at ‘90,000 as on 31.12.14; was written up to its cost, * 1,00,000 for preparing Profit ang Loss account for the year 2015. Mustration 5 The following is the Balance Sheets of the Andhra Industrial Corporation Lid. as on 31st December 2015 and 2016. BALANCE SHEET Assets: 2015 2016 Fixed Assets: Propert 148,500. 144,250 Machinen 1.12950) 1:26:200 Goodwill ~ 10,000 Current Assets: Stock 110,000 92,000 Trade Debiors 86,160 69.430 ‘Cash at Bank 500 11000 Pre-paymenis 3.370 7.000 467480 253,880 Tal Sharenokies funds: Paid up 270,000 270,000 Capital Reserves 30,000 1000 Profil and Loss AGGounT 39,690 41.220 Current Liabilties: Credilors 39,000 41,660 Bis Payable 33.790 11.000 Bank Overdraft 60,000 = Provision for taxation 40,000 50,000 A6TA80 | 253,880 During the year ended 31st December, 2016, a divided of * 26,000 was paid and assets of another company were purchased for * 50,000 payable in fully paid-up shares. Such assets purchased were: Stock * 21,640; Machinery * 18,360; and Goodwill * 10,000. In addition Plant at a cost of * 5,650 was purchased during the year, depreciation on Property * 4,250; on Machinery * 10,760. Income tax during the year amounting fo * 28,70 was charged to provision for taxation, Net profit for the year before tax was * 76,300. Prepare Funds Flow Statement for the year 2016.Statement, Income Statement for the year ended March 31, 2016 Net Sales (A) 2,52,00,000 Less | ‘Cash cost of sales 1,98,00,000 Depreciation 6,00,000 Salaries and Wages 24,00,000 ‘Operating Expenses 8,00,000 Provision for Taxation 8,80.000 @ 244,80,000 Net Operating Prof (A - B] 7.20,000 | Norecuting Income — Profiis on sale of 20,000 equipment 40,000 Retained eamings and Profs brought forward 75,18,000 23,58,000 Dividends declared and paid during the year 7,20.000 Profit and Loss A/c balance as on March 31, 16,38,000 2016 Balance Sheet as on 0 0 Resale ‘March 31, 2015 March 31, 2016 Fixed Assets: Land 780,000 9,50,000 | Builcings and Equioment 36,00,000 37,60,000 } ‘Current Assets: ‘Cash 500,000 720,000 Debian 16,80,000 18,60,000 Stock 26,40,000) 9,60,000 Advances 78,000 90,000 30,78,000 1.03,50,000 Balance Sheet as on ] a Liabilities and Equity March 31, 2015 March 31, 2016 Share Capital 36,00,000 44,40,000_ Surplus in Profit and Loss ATE 15.18,000 16,38,000 Sundry Creditors 724,00,000) 23.40,000) ‘Oulstanging Expenses 240,000. 480,000. Income - Tax payable 7.20,000 1,32,000 Accumulated Depreciation on 12,00,000 13,20,000 Buildings and Equipment 90,78,000 1,03,50,000 The original cost of equipment sold during the year 2015-16 was * 7,20,000.Mlustration 7 The Balance Sheet of JK Limited as on 31st March, 2015 and 31st March, 2016 are given below: Balance Sheet as on ( 000") Liabilifies 31.03.15 31.03.16 Assets 31.03.15 31.03.16 Share Capital 1.440 1,920 | Fixed Assets 3.840 4,560 ‘Capital Reserve = 48 | Less: 1,104) 1,392 Depreciation General Reserve B16 980 [Nel Fixed 2.736 3.168 Asset Profit and Loss AJE 288, 360 [Invesiment 480, 384) 9% Debenture 960) 672 | Cash 210 312 ‘Current Liabilities Proposed a 174 | Other Curent 1134 1272, Dividend Assels (including Stock) Provision for Tax 432, 408 | Preliminary 96 48 Expenses Unpaid Dividend = 18 4,656 5,184 4,656 5,184 Additional Information: 1. During the year 2015-2016, Fixed Assets with a book value of °2,40,000 (accumulated depreciation ~ 84,000) was sold for *1,20,000. 2. Provided * 4,20,000 as depreciation. 3. Some investments are sold at a profit of °48,000 and profit was credited to Capital Reserve. 4, Il decided that stocks be valued at cost, whereas previously the practice was to value stock at cost less 10 per cent. The stock was * 2,59,200 as on 31.03.15. The stock as on 31.03.16 was correctly valued at“ 3,60,000. 5. It decided to write off Fixed Assets costing °60,000 on which depreciation amounting to * 48,000 has been provided. 6, Debentures are redeemed at * 105. Prepare a Cash Flow Statement. Mlystration & Balance Sheets of a company as on 31’March, 2015 and 2016 were as follows: ("0007 31.03.15 31.08.16 Assets W088 31.03.16 Uabilties Equity share 10,00,000 10,00,000 | Gooawi 1,00,000 "80,000 capital 8% Pref. Shave 200,000 3,00,000 | Land ond 7,00,000 50,000 capital Building General 7,20,000, 1,45,000 | Plant ond 6,00,000, 660,000 Reserve Machinen Secutiies = 25,000 | Investments 240,000 220,000 Premium [non trading) Profil & Loss 210,000 300,000 | Stock “400,000 385,000 Ale,5,00,000 Debiors (Creditors 185,000 2.15,000 | Cash and Bank: Provision for Tax ‘80,000 1,05,000 | Prepaid Expenses Proposed 1,36,000 144,000 | Premium on Dividend Redemption of debenture [ 24,31,000 | 25,34,000 24,31,000 Additional Information: |. Investments were sold during the year at a profit of * 15,000. 2. During the year an old machine costing * 80,000 was sold for * 36,000. Its written down value was * 45,000, 3. Depreciation charged on Plant and Machinery @ 20% on the opening balance. 4. There was no purchase or sale of Land and Building. 5, Provision for tax made during the year was * 96,000. 6, Preference shares were issued for consideration of cash during the year, You are required to prepare Cash Flow Statement as per AS-3. llustration 9 The Balance Sheets of a company as on ist March, 2015 and 2016 are given below: Liabilities 31.03.15 31.03.16 Assets 31.03.15 31.03.16 Equity Share 14,40,000 19,20,000 | Fixed Assets 38,40,000 45,60,000 Capital Capital = 8,000 | Less 177.04,000) 113.92,000) Reserve Depreciation General 8,16,000 9,60,000 27,36,000 31,68,000 Reserve Profit & Loss 2,88,000 360,000 | Investment 480,000 384,000, Ale 9% 9,60,000 72,000 | Sundry 12,00,000 14,00,000 Debentures Debtors Sundiy 5,50,000 '5,90,000 | Stock 1,40,000 1,84,000 Creaitors Bills Payable 26,000 34,000 | Cash in hand 4,000 = Proposed 144,000 1,72,800 | Preliminary 96,000 48,000 Dividend Expenses Provision for 432,000 508,000 tox Unpaid — 19,200 Dividend 46,56,000 51,84,000 146,56,000 51,84,000Lo Ay \ Q( WG QW MH {&) /as *2,40,000 and depreciation provided on it was yy \ e Li LEé Additional During th redited to capital reserve. @ 105. ting * 60,000 on which depreciation amounting to * 48,000 has You are required to prepare Cash Flow Statement as per AS-3,