CASH FLOW:
1) G Ltd is carrying on a paper manufacturing business. In the current year, it purchased machinery for ₹
30,00,000; it paid salaries of ₹ 60,000 to its employees, it required funds for expansion and therefore, issued
shares of ₹ 20,00,000. It earned a profit of ₹ 9,00,000 for the current year. Find out cash flows from operating
activities. ANS: 9,00,000
2) The various activities operating, investing and financing classified as per
___related to cash flow statement
a. AS – 5(revised)
b. AS – 4(revised)
c. AS – 6(revised)
d. AS – 3(revised) ***
3) Dividend Received is concerned with_________.
a. Operating Activities
b. None of these
c. Financing Activities
d. Investing Activities ***
4) Cash Flow Statement is also known as
a. None of these
b. ‘Statement of Changes in Financial Position on Cash basis’ and
‘Statement accounting for variation in cash’ ***
c. Statement of Changes in Financial Position on Cash basis
d. Statement accounting for variation in cash
5) Dividend Received is considered as operating activity when______.
a. Received by a manufacturing company
b. Received by a Trading Company.
c. Received by any company.
d. Received by a finance company ****
6) A company had following balances
investment in the beginning = 34000
investment at the end = 28000
during the year, company sold 40% of its investments held in the beginning of
the period at a profit of 8400. calculate cash flow form investing activity.
7) Classify the following into Cash Flows from-
Operating Activities; Investing Activities; Financing Activities.
a. Cash sale of goods in cash
b. Cash payment to acquire fixed assets
c. Cash payments from issuing shares at a premium
d. Payment of dividend
e. Interest received on Investment
f. Interest Paid on debentures
g. payment of income tax
h. Cash repayment of long term loans
i. Cash payment of salaries and wages to employees
8) X Ltd. Made a profit of Rs. 1,00,000 after considering the following
items:
1. Depreciation of fixed assets Rs. 20,000
2. Writing off preliminary expenses Rs. 10,000
3. Loss on sale of furniture Rs. 1,000
4. Provision of Taxation Rs. 1,60,000
5. Transfer to General reserve Rs. 14,000
6. Profit on sale of Machinery Rs. 6,000
The following additional information is available to you:
31.03.2 31.03.2
Particulars 014 015
Rs. Rs.
Debtors
Creditors 24,000 30,000
Bills 20,000 30,000
Receivables 20,000 17,000
Bill Payables 16,000 12,000
Prepaid 400 600
Expenses
Calculate Cash Flow from Operating Activities.
9) From the following information calculate cash flow from investing activities: (251000) ANS
31.03.2014 31.03.2015
Particulars
Rs. Rs.
Machinery (at Cost) 5,00,000 5,50,000
Accumulated Depreciation 1,00,000 1,20,000
Patents 2,00,000 1,20,000
Goodwill 1,50,000 1,00,000
Investment 2,50,000 5,00,000
Additional Information
(i) During the year, a machine costing Rs. 50,000 with its accumulated depreciation of Rs. 25,000 was sold
for Rs. 20,000.
(ii) Patents were written off to the extent of Rs. 60,000 and some patents were sold at a profit of Rs. 10,000.
(iii) 40% of the investments held in the beginning of the year were sold at 10% Profit.
(iv) Interest received on investment Rs. 25,500.
(v) Dividend received on investment Rs. 8,500.
(vi) Rent received Rs. 5,000.
10) From the following information, Complete the Cash flow Statement of RK Ltd.
Cash Flow Statement
For the year ended on 31st March 2015
Particulars Rs. Rs. 11)
A. Cash flow from operating activities
Net Profit Before Tax and Extra-ordinary Item ………..
Adjustment for non-cash and non-operating items 12)
Depreciation ………..
Loss on sale of Machinery ………..
Operating Profit before working capital changes
Adjustment for charges in working Capital ………..
Capital
Decrease in Trade Payables 13)
Increase in Inventory (8,000)
Cash generated from operation before tax and extraordinary items (………..)
Less : Increase tax paid
Net cash flow from operating activities 50,000
B. Cash Flow from Investing Activities ……….. 14)
Purchase of Fixed Assets (………..)
Sale of Machinery
Net cash flow from Investing Activities 15)
C. Cash Flow From Financing Activities ………..
Proceeds from Issue of share (………..)
Net cash flow from Financing Activities ……….. ………..
……….. 16)
17)
(A+B+C) Net Increase in Cash & Cash equivalent during the year
………..
Add : Cash & Cash Equivalent at the beginning of the period 18)
Cash & Cash Equivalent at the end of the period
……….. 19)
Note to Accounts
31.3.2014 31.3.2014
Particulars
(Rs.) (Rs.)
55,000 40,000
70,000 50,000
Note 1. Reserve and Surplus:
General Reserve 1,25,000 90,000
Balance in Statement of P&L
52,000 37,000
Note 2. Cash and Cash Equivalents Cash at Cash
52,000 37,000
Note 3. Short term Provisions
Provision for Taxation
25,000 20,000
25,000 20,000
Additional Information:
(1) Depreciation charges on Building for the3 year 2014-15 was Rs. 10,000.
(2) During the year 2014-15, machinery of Rs. 1,38,000 was purchased.
(3) A part of machinery costing Rs. 20,000 with accumulated depreciation of Rs 6,500 was sold for Rs. 8,500.
(4) Income tax paid during the year 2014-15 was Rs. 18,000.