Cash Flow example

2005 2006 2005 2006 1000000 500000 500000 475000 1000000 1200000 700000 1000000 300000 270000 800000 850000 300000 3950000 4650000 500000 300000 50000 25000 320000 430000 10 880000 970000 11 1600000 2500000 12 400000 530000 6000000 7000000 6000000 7000000 19 20 21 22 23 24 46 45 2 2 25 26 722000 27 47 48 325000 28 900000 29 -700000 30 1247000 35 31 35000 32 -50000 33 -617000 34 -632000 36 37 220000 38 90000 39 -400000 40 -550000 41 -640000 42 -25000 43 50000 44 25000 0 1 49 50 3 49 50 45 69 69 5 1000000 1000000 51 100000 80000 4 200000 300000 13 700000 650000 70 8 120000 145000 14 600000 660000 71 355000 6 0 25000 52 240000 220000 72 9 210000 300000 53 400000 385000 73 20000 59 500000 300000 54 288000 415000 74 120000 60 185000 215000 55 88000 93000 75 50000 61 80000 105000 56 15000 11000 76 9000 12 136000 144000 58 0 20000 77 554000 2431000 2534000 2431000 2534000 78 15000 79 -127000 19 80 4000 62 81 30000 63 82 476000 64 83 -71000 65 84 405000 66 67 85 68 86 -225000 87 36000 24 88 -189000 89 90 125000 57 -220000 91 -136000 92 -231000 93 -15000 94 328000 95 313000 Balance Sheets Liabilities Rs. Assets Preference Share Capital Equity Share Capital Share Premium Capital Redemption Reserve General Reserve P Secured loan Current Liabilites Proposed Dividend Land Machinery Investments Current Assets Cash - Additional Information: 1) during the year machinery costing Rs.95000 and WDV Rs.17000 was sold for Rs.35000. 2) Pref. Share capital was redeemed at a premium of 10%, partly out of proceeds of issue of 20000 equity shares of Rs.10 each issued at a premium and partly out of profits otherwise avaiable for dividends. 3) Depreciation on machinery for the year is Rs.300000. You are required to prepare a cash flow Statement. Cash Flow from operation activities Profit before tax for the year + Depreciation + Inreease in current liabilites - Increase in current assets Cash from operation activities Sale of plant Purchase of investments Purchase of Machinery Cash from Investing activities Cash Flow from Investing activities Cash Flow from Financing activities Issue of shares at a premium Increase in secured loans Payment of Dividends Redemption of Preference Shares Cash from Financing activities Decrease in cash during the year Opening Cash Balance Closing Cash Balance Particulars Cash Flow Statement (For the year 2006) on land on Machinery 300000 31.3.2007 31.3.2008 Goodwill Investments(non trade) Stock Debtors Cash Prepaid Expenses Redemption of Debentures Premium on Redemption of Debentures 11% Debentures Creditors Provision for tax 1) Investements were sold during the year at a profit of Rs.15,000 2) During the year an old machine costing Rs.80,000 was sold for Rs.36000. its written down value was Rs.45000. 3) Deprecaiton charged on plant 4) There was no purchase or sale of Land 5) Provision for tax made during th eyear was Rs.96000. 6) Preference shares were issued for cash consideration during the year. Amount (Rs.) Cash Flow from Operating Activities Net Profit before tax Adjustment for: Goodwill written off Depreciation on Plant Depreciation on Building Loss on sale of Plant Operating profit before working capital changes Decrease in stock Increase in debtors Decrease in prepaid expenses Increase in creditors Cash generated from operations Tax payment Net Cash operating activities Cash Flow from Investing Activities Purchase of plant Sale of plant Net cash from investing activities Cash flow from Financing Activities Issue of preference shares Dividend payment Net cash from financing activities Net Increase in cash Cash Cash