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Model Test Papers M.51

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

Particulars ` ` `
I. Cash Flow from Operating Activities
Net Profit for the Year:
Closing Balance of Surplus, i.e., Balance in Statement of Profit and Loss 3,40,000
Less: Opening Balance of Surplus, i.e., Balance in Statement of Profit and Loss 2,80,000
Profit during the Year 60,000
Add: Provision for Tax 45,000
Transfer to General Reserve 50,000
Dividend Payable (Proposed Dividend for the year ended 31st March, 2017) 2,25,000
Net Profit before Tax and Extraordinary Items 3,80,000
Add: Non-Cash/Non-operating Expenses
Depreciation on Plant and Machinery 1,00,000
4,80,000
Less: Non-operating Income (Gain on Sale of Building) 40,000
Operating Profit before Working Capital Changes 4,40,000
Add: Decrease in Current Assets:
Inventories 1,50,000
5,90,000
Less: Increase in Current Assets and Decrease in Current Liabilities:
Trade Receivables 12,25,000
Trade Payables 1,70,000 (13,95,000)
(8,05,000)
Less: Income Tax Paid (WN 1) (3,70,000)
Cash Used in Operating Activities (11,75,000)
II. Cash Flow from Investing Activities
Purchase of Investments (50,000)
Proceeds from Sale of Building 4,40,000
Proceeds from Sale of Machinery 1,00,000
Purchase of Building (2,00,000)
Cash Flow from Financing Activities 2,90,000
III. Cash Flow from Financing Activities
Proceeds from Issue of 10% Debentures 13,50,000
Dividend Paid (2,25,000)
Cash Flow from Financing Activities 11,25,000
IV. Net Increase in Cash and Cash Equivalents (I + II + III) 2,40,000
Add: Opening Cash and Cash Equivalents* (` 6,50,000 + ` 95,000) 7,45,000
V. Closing Cash and Cash Equivalents (` 9,00,000 + ` 85,000) 9,85,000

*Cash and Cash Equivalents = Cash and Cash Equivalents + Current Investments.