Page 237 - AAAXII

M.226 An Aid to Accountancy—CBSE XII

Revenue from Operations
(ii) Working Capital Turnover Ratio =
Working Capital

` 60,00,000
= = 12 Times.
` 5,00,000
Notes:
1. Working Capital = Other Current Assets + Closing Inventory – Current Liabilities
= ` 8,00,000 + ` 1,00,000 – ` 4,00,000 = ` 5,00,000.
2. Revenue from Operations = Cash Sales + Credit Sales
= ` 40,00,000 + ` 20,00,000 = ` 60,00,000.

23. CASH FLOW STATEMENT for the year ended 31st March, 2018

Particulars ` `
A. Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Activities (WN 1) 1,40,000
Adjustment for Non-Cash and Non-Operating Items:
Add: Depreciation 80,000
Interest on Debentures 10,000 90,000
2,30,000
Less: Gain (Profit) on Sale of Machine 10,000
Gain (Profit) on Sale of Investment 8,000 18,000
Operating Profit before Working Capital Changes 2,12,000
Add: Decrease in Current Assets:
Trade Receivables 1,10,000
3,22,000
Less: Decrease in Current Liabilities:
Trade Payables 15,000
Cash Generated from Operating Activities 3,07,000
Less: Tax Paid 55,000
Cash Flow from Operating Activities 2,52,000
B. Cash Flow from Investing Activities
Proceeds from Sale of Machinery 25,000
Purchase of Machine (4,40,000)
Proceeds from Sale of Investment 48,000
Purchase of Investment (75,000)
Cash Used in Investing Activities (4,42,000)
C. Cash Flow from Financing Activities
Proceeds from Issue of 10% Debentures 60,000
Interest Paid (10,000)
Proceeds from Issue of Shares 2,10,000
Cash Flow from Financing Activities 2,60,000
D. Net Increase in Cash and Cash Equivalents (A + B + C) 70,000
Add: Opening Balance of Cash and Cash Equivalents (` 1,70,000 + ` 40,000) 2,10,000
E. Closing Balance of Cash and Cash Equivalents (` 2,00,000 + ` 80,000) 2,80,000