Page 118 - afs12

4.36 Analysis of Financial Statements—CBSE XII

Solution: CASH FLOW STATEMENT for the year ended 31st March, 2024
Particulars `
(A) Cash Flow from Operating Activities
Net Profit before Tax and Extraordinary Items (WN 1) 80,000
Add: Non-Cash Item: Depreciation 20,000
Operating Profit before Working Capital Changes 1,00,000
Add: Decrease in Current Assets and Increase in Current Liabilities:
Trade Payables 5,000
Inventories 10,000 15,000
1,15,000
Less: Increase in Current Assets and Decrease in Current Liabilities:
Trade Receivables 10,000
Outstanding Expenses 4,000 14,000
Cash Generated from Operations 1,01,000
Less: Tax Paid (Given) 15,000
Cash Flow from Operating Activities 86,000
(B) Cash Flow from Investing Activities
Purchase of Property, Plant and Equipment (WN 2) (60,000)
Cash Used in Investing Activities (60,000)
(C) Cash Flow from Financing Activities
Decrease in Cash Credit (10,000)
Payment of Dividend [` 20,000 – ` 4,000 (Unclaimed)] (16,000)
Cash Used in Financing Activities (26,000)
(D) Net Increase in Cash and Cash Equivalents (A + B + C) Nil
Add: Opening Balance of Cash and Cash Equivalents 30,000
(E) Closing Balance of Cash and Cash Equivalents 30,000

Working Notes:
1. Calculation of Net Profit before Tax and Extraordinary Items: `
Surplus, i.e., Balance in Statement of Profit & Loss as on 31st March, 2024 90,000
Less: Surplus, i.e., Balance in Statement of Profit & Loss as on 31st March, 2023 50,000
40,000
Add: Appropriations:
Interim Dividend 20,000
Provision for Tax 20,000
Net Profit before Tax and Extraordinary Items 80,000

2. Dr. PROPERTY, PLANT AND EQUIPMENT ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 2,35,000 By Depreciation A/c 20,000
To Cash A/c (Balancing Figure) 60,000 By Balance c/d 2,75,000
(Fixed Asset Purchased)
2,95,000 2,95,000