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Model Test Papers M.305

23. CASH FLOW STATEMENT for the year ended 31st March, 2018 as per AS-3 (Revised)
Particulars ` ` `
I. Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items (WN 1) 90,000
Add: Depreciation on Machinery (WN 3) 75,000
Loss on Sale of Machinery (WN 2) 3,000
Interest on Debentures (` 1,00,000 × 10%) + (` 1,00,000 × 10% × 6/12) 15,000
1,83,000
Less: Gain (Profit) on Sale of 10% Non-current Investment (WN 2) 6,000
Interest on 10% Non-current Investment (10% of ` 50,000) 5,000 11,000
Operating Profit before Working Capital Changes 1,72,000
Add: Decrease in Current Assets and Increase in Current Liabilities:
Inventories 30,000
Trade Payables 60,000
Less: Increase in Current Assets:
Trade Receivables (50,000)
Cash Flow from Operating Activities 2,12,000
II. Cash Flow from Investing Activities
Purchase of Machinery (WN 2) (2,90,000)
Purchase of 10% Non-current Investments (WN 4) (50,000)
Sale Proceeds of Machinery (WN 2) 12,000
Sale of 10% Non-current Investments (WN 4) 36,000
Interest on 10% Non-current Investments 5,000
Cash Used in Investing Activities (2,87,000)
III. Cash Flow from Financing Activities
Proceeds from Issue of Equity Shares (` 1,00,000 + ` 20,000 Premium) 1,20,000
Proceeds from Issue of 10% Debentures (` 1,00,000 – ` 10,000 Discount) 90,000
Interim Dividend Paid (25,000)
Interest on 10% Debentures (15,000)
Share Issue Expenses (5,000)
Cash Flow from Financing Activities 1,65,000
IV. Net Increase in Cash and Cash Equivalents (I + II + III) 90,000
Add: Opening Cash and Cash Equivalents (Cash at Bank) 1,30,000
V. Closing Cash and Cash Equivalents (Cash at Bank) 2,20,000
Working Notes:
1. Calculation of Net Profit before Tax and Extraordinary Items:
Particulars `
Surplus, i.e., Balance in Statement of Profit and Loss (Closing) 2,15,000
Less: Surplus, i.e., Balance in Statement of Profit and Loss (Opening) 1,70,000
Profit for the Year 45,000
Add: Transfer to General Reserve (` 1,00,000 – ` 80,000) 20,000
Interim Dividend Paid 25,000
Net Profit before Tax and Extraordinary Items 90,000