Question

From the following information, prepare Cash Flow Statement:

Particulars	(₹)
Opening Cash and Bank Balances	1,50,000
Closing Cash and Bank Balances	1,70,000
Decrease in Stock	80,000
Increase in Bills Payable	1,20,000
Sale of Fixed Assets	3,00,000
Repayment of Long-term Loan	5,00,000
Net Profit for the Year	20,000

Answer 1

Cash Flow Statement
	Particulars		Amount (₹)	Amount (₹)
A	Cash Flow from Operating Activities
	Profit as per Statement of Profit and Loss (Net Profit)		20,000
	Profit Before Taxation		20,000
	Items to be Added :		–
	Operating Profit before Working Capital Adjustments		20,000
	Add: Decrease in Current Assets
	Stock		80,000
	Add: Increase in Current Liabilities
	Bills Payable		1,20,000
	Cash Generated from Operations		2,20,000
	Less: Tax Paid		–
	Net Cash Flow from Operating Activities			2,20,000
B	Cash Flow from Investing Activities
		Sale of Fixed Assets	3,00,000
	Net Cash Flows from Investing Activities			3,00,000
C	Cash Flow from Financing Activities
	Repayment of Long-Term Loan		(5,00,000)
	Net Cash Used in Financing Activities			(5,00,000)
D	Net Increase or Decrease in Cash and Cash Equivalents			20,000
		Add: Cash and Cash Equivalent in the beginning of the period		1,50,000
	Cash and Cash Equivalents at the end of the period			1,70,000