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Question
Following information is related to ABC Ltd.:
STATEMMENT OF PROFIT AND LOSSfor the year ended 31st March, 2019
|
Particulars |
Note No. |
(₹) |
|
I. Revenue from Operations (Net Sales) |
30,00,000 | |
| II. Other Income | 1 | 45,000 |
|
III. Total Revenue (I + II) |
30,45,000 | |
| IV. Expenses : | ||
|
(a) Purchases of Stock-in-Trade |
23,03,000 | |
|
(b) Change in Inventories of Stock-in-Trade |
2 | (16,000) |
|
(c) Depreciation and Amortisation Expenses |
1,85,000 | |
|
(d) Other Expenses |
3 | 3,29,000 |
|
Total Expenses |
28,01,000 | |
| V. Profit before Tax (III − IV) | 2,44,000 | |
|
VI. Less: Provision for Tax |
64,000 | |
|
VII. Profit after Tax (V – VI) |
1,80,000 |
Notes to Accounts
|
Particulars |
₹ |
| 1. Other Income | |
| (a) Dividend Received |
5,000 |
| (b) Gain (Profit) on Sale of Plant |
40,000 |
|
45,000 |
|
| 2. Change in Inventories of Stock-in-Trade | |
| Opening Inventories |
2,84,000 |
| Less: Closing Inventories |
3,00,000 |
|
(16,000) |
|
| 3. Other Expenses | |
| (a) Office Expenses |
58,000 |
| (b) Selling Expenses |
2,35,000 |
| (c) Loss on Sale of Assets |
36,000 |
|
3,29,000 |
| Other Information: | Balance as on 31st March, 2019 (₹) |
Balance as on 31st March, 2018 (₹) |
| Trade Payables | 2,78,000 | 2,50,000 |
| Trade Receivables | 4,52,000 | 4,15,000 |
| Inventories | 3,00,000 | 2,84,000 |
| Office Expenses Outstanding | ... | 5,000 |
| Selling Expenses Outstanding | 25,000 | 22,000 |
Calculate Cash Flow from Operating Activities.
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Solution
|
Cash Flow from Operating Activities |
|||
|
|
Particulars |
Amount (₹) |
Amount (₹) |
|
|
Profit as per Statement of Profit and Loss |
|
1,80,000 |
|
|
Add: Tax Expense |
|
64,000 |
|
|
Profit Before Taxation |
|
2,44,000 |
|
|
Items to be Added: |
|
|
|
|
Loss on Sale of Assets |
36,000 |
|
|
|
Depreciation and Amortisation Expenses |
1,85,000 |
2,21,000 |
|
|
|
|
4,65,000 |
|
|
Items to be Deducted: |
|
|
|
|
Dividend Received |
(5,000) |
|
|
|
Profit on Sale of Plant |
(40,000) |
(45,000) |
|
|
Operating Profit before Working Capital Adjustments |
|
4,20,000 |
|
|
Less: Decrease in Current Liabilities |
|
|
|
|
Office Expenses Outstanding |
|
(5,000) |
|
|
Add: Increase in Current Liabilities |
|
|
|
|
Trade Payables |
28,000 |
|
|
|
Selling Expenses Outstanding |
3,000 |
31,000 |
|
|
Less: Increase in Current Assets |
|
|
|
|
Trade Receivables |
(37,000) |
|
|
|
Inventories |
(16,000) |
(53,000) |
|
|
Cash Generated from Operations |
|
3,93,000 |
|
|
Less: Tax Paid |
|
(64,000) |
|
|
Net Cash Flows from Operating Activities |
|
3,29,000 |
