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Cash Flow Statement 4.33
Solution: CASH FLOW FROM OPERATING ACTIVITIES

Particulars `
Net Loss as per Statement of Profit & Loss (22,000)
Adjustments for Non-Cash and Non-Operating Items:
Add: Depreciation and Amortisation Expenses 50,000
Loss on Sale of Assets 30,000 80,000
58,000
Less: Non-Operating Income: Other Incomes (Rent and Miscellaneous) 22,000
Operating Profit before Working Capital Changes 36,000
Add: Increase in Current Liabilities:
Wages Payable 10,000
Salaries Payable 25,000 35,000
71,000
Less: Increase in Current Assets:
Inventories (` 96,000 – ` 80,000) 16,000
Accrued Commission 7,000
Prepaid Insurance 3,000 26,000
Cash Flow from Operating Activities 45,000

Illustration 19. From the following Balance Sheet and information, prepare Cash Flow
Statement:
BALANCE SHEET as at 31st March, 2024
Particulars Note No. 31st March, 31st March,
2024 (`) 2023 (`)
I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 8,00,000 5,00,000
(b) Reserves and Surplus:
Surplus, i.e., Balance in Statement of Profit & Loss 3,50,000 2,00,000
2. Non-Current Liabilities
Long-term Borrowings: 6% Debentures 1,00,000 1,00,000
3. Current Liabilities
(a) Short-term Borrowings: Bank Loan 50,000 ...
(b) Trade Payables 1 75,000 1,00,000
(c) Short-term Provisions: Provision for Tax 65,000 50,000
Total 14,40,000 9,50,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
(i) Property, Plant and Equipment 2 5,20,000 7,00,000
(ii) Intangible Assets: Goodwill 50,000 1,00,000
(b) Non-current Investments 2,70,000 ...
2. Current Assets
(a) Current Investments 3 90,000 ...
(b) Inventories 50,000 60,000
(c) Trade Receivables 80,000 40,000
(d) Cash and Cash Equivalents: Cash and Bank Balance 3,80,000 50,000
Total 14,40,000 9,50,000