Question

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheet of Libra Ltd. as at 31.3.2013 and 31.3.2012. 

	Particulars	Note No.	31.3.2013 Rs	31.3.2012 Rs
I	Equity and Liabilities :
1.	Shareholder’s Funds :
	(a) Share Capital		8,00,000	6,00,000
	(b) Reserve and Surplus		4,00,000	3,00,000
2.	Non-Current Liabilities :
	Long Term Borrowings		1,00,000	1,50,000
3.	Current Liabilities :
	Trade Payables		40,000	48,000
	Total		13,40,000	10,98,000
II	Assets
1.	Non-Current Assets :
	(a) Fixed Assets :
	(i) Tangible Assets		8,50,000	5,60,000
	(b) Non-Current Investment		2,32,000	1,60,000
2.	Current Assets :
	(a) Current Investments (Marketable)		50,000	1,34,000
	(b) Inventories		76,000	82,000
	(c) Trade Receivables		38,000	92,000
	(d) Cash and Cash Equivalents		94,000	70,000
	Total		13,40,000	10,98,000

Answer 1

Cash Flow Statement                                      for the year ended March 31, 2013
	Particulars		Amount (Rs)	Amount (Rs)
A	Cash Flow from Operating Activities
	Profit as per Statement of Profit and Loss		1,00,000
	Profit Before Taxation			1,00,000
	Operating Profit before Working Capital Adjustments			1,00,000
	Add: Decrease in Current Assets
		Trade Receivables	54,000
		Inventories	6,000	60,000
	Less: Decrease in Current Liabilities
	Trade Payables		(8,000)	(8,000)
	Net Cash Flows from Operating Activities			1,52,000
B	Cash Flow from Investing Activities
		Purchase of Fixed Assets	(2,90,000)
		Purchase of Investments	(72,000)	(3,62,000)
	Net Cash Used in Investing Activities
C	Cash Flow from Financing Activities
	Proceeds from Issue of Share Capital		2,00,000
	Repayment of Long-term Loan		(50,000)
	Net Cash Flow from Financing Activities			1,50,000
D	Net Increase or Decrease in Cash and Cash Equivalents			(60,000)
	Add: Cash and Cash Equivalent in the beginning of the period			2,04,000
	Cash and Cash Equivalents at the end of the period			1,44,000