Page 344 - AAAXII

Model Test Papers M.329

Calculation of Revenue from Operations:
Let Revenue from Operations = ` 100
Gross Profit = ` 20
\ Cost of Revenue from Operations = ` 100 – ` 20 = ` 80
If cost of Revenue from Operations is ` 80, Revenue from Operations = ` 100
If cost of Revenue from Operations is ` 3,20,000 Revenue from Operations
= ` 3,20,000 × 100/80 = ` 4,00,000

Calculation of Working Capital:
Working Capital = Capital Employed – Non-current Assets
= ` 1,00,000 – ` 80,000 = ` 20,000.

23. CASH FLOW STATEMENT for the year ended 31st March, 2018
Particulars ` `
A. Cash Flow from Operating Activities
Closing Surplus, i.e., Balance in Statement of Profit and Loss 1,75,000
Less: Opening Surplus, i.e., Balance in Statement of Profit and Loss 1,00,000
75,000
Add: Provision for Tax (WN 2) 25,000
Interim Dividend Paid 55,000
Net Profit before Tax and Extraordinary Items 1,55,000
Adjustment for: Non Cash and Non-operating Items:
Loss on Sale of Equipment 6,000
Patents Amortised 2,500
Depreciation 9,000
Operating Profit before Working Capital Changes 1,72,500
Less: Increase in Current Assets and Decrease in Current Liabilities:
Trade Payables 1,500
Inventories 40,000
Trade Receivables 20,000 61,500
Cash Generated from Operations 1,11,000
Less: Tax paid 15,000
Cash Flow from Operating Activities 96,000
B. Cash Flow from Investing Activities
Purchase of Equipment (50,000)
Purchase of Non-current Investments (47,500)
Proceeds from Sale of Equipment (WN 3) 35,000
Cash Used in Investing Activities (62,500)
C. Cash Flow from Financing Activities
Proceeds from Issue of Shares 1,00,000
Repayment of Bank Loan (25,000)
Payment of Interim Dividend (55,000)
Cash Flow from Financing Activities 20,000
D. Net Increase in Cash and Cash Equivalents (A + B + C) 53,500
Add: Opening Cash and Cash Equivalents 75,000
E. Closing Cash and Cash Equivalents 1,28,500