Page 113 - MA12

Model Test Papers M.19

10. Uniball Ltd.
CASH FLOW STATEMENT as Per AS–3 for the year ended 31st March, 2020
Particulars ` `

I. Cash Flow from Operating Activities
Net Profit before Tax (WN 1) 6,00,000
Adjustment for Non-Cash and Non-Operating Items:
Add: Depreciation on Machinery 7,00,000
Interest on Debentures (10% of ` 10,00,000) 1,00,000
Amortisation of Intangible Assets (Patents) 40,000
14,40,000
Less: Gain (Profit) on Sale of Non-current Investments 10,000
Gain (Profit) on Sale of Machinery 60,000 70,000
Operating Profit before Working Capital Changes 13,70,000
Add: Decrease in Current Assets and Increase in Current Liabilities:
Inventories 2,00,000
Trade Receivables 2,00,000
Trade Payables 9,50,000 13,50,000 27,20,000
Less: Decrease in Current Liabilities:
Outstanding Expenses 30,000
Cash Flow from Operating Activities 26,90,000
II. Cash Flow from Investing Activities
Purchase of Machinery (WN 2) (18,80,000)
Sale of Machinery (WN 2) 2,40,000
Sale of Non-current Investments (WN 3) 60,000
Purchase of Non-current Investments (WN 3) (1,00,000)
Cash Used in Investing Activities (16,80,000)
III. Cash Flow from Financing Activities
Interest on Debentures Paid (1,00,000)
Dividend Paid (` 2,00,000 – ` 60,000) (1,40,000)
Cash Used in Financing Activities (2,40,000)
IV. Net Increase in Cash and Bank Balances (I + II + III) 7,70,000
V. Add: Opening Cash and Bank Balances 1,80,000
VI. Closing Cash and Bank Balances (IV + V) 9,50,000

Working Notes:
1. Calculation of Net Profit before Tax: `
Surplus, i.e., Balance in Statement of Profit and Loss (Closing) 9,00,000
Less: Surplus, i.e., Balance in Statement of Profit and Loss (Opening) 5,00,000
4,00,000
Add: Interim Dividend Paid 2,00,000
Net Profit before Tax 6,00,000