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4.16 Analysis of Financial Statements—CBSE XII

II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 5 50,000 60,000
2. Current Assets
(a) Inventories 62,000 50,000
(b) Trade Receivables 34,400 15,000
(c) Cash and Cash Equivalents 7,000 2,400
(d) Other Current Assets 6 1,000 600
Total 1,54,400 1,28,000

Notes to Accounts
Particulars 31st March, 31st March,
2024 (`) 2023 (`)
1. Share Capital
Equity Share Capital 80,000 55,000
12% Preference Share Capital 20,000 25,000
1,00,000 80,000
2. Reserves and Surplus
General Reserve 7,600 4,000
Surplus, i.e., Balance in Statement of Profit & Loss 2,400 2,000
10,000 6,000
3. Long-term Borrowings
15% Debentures 14,000 12,000
4. Short-term Provisions
Provision for Taxation 8,400 6,000
5. Property, Plant and Equipment
Machinery (Cost) 80,000 82,000
Less: Accumulated Depreciation 30,000 22,000
50,000 60,000
6. Other Current Assets
Prepaid Expenses 1,000 600

Additional Information:
1. Proposed Dividend for the year ended 31st March, 2023 and 2024 are ` 10,000 and
` 8,000 respectively.
2. Provision for tax made ` 9,400.
3. Machinery costing ` 20,000 (accumulated depreciation till date of sale ` 6,000) were sold
for ` 10,000.
4. New Debentures were issued on 31st March, 2024.
Solution: Simco Ltd.
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) 23,400
Add: Depreciation (WN 4) 14,000
Interest on Debentures (15% of ` 12,000) 1,800
Loss on Sale of Machinery (WN 3) 4,000
Operating Profit before Working Capital Changes 43,200