Prepare cash flow statement from following data
Balance sheet
Liabilities
Capital 2006- Rs 370000 and 2007 –Rs. 372500
Bank loan 75000 and 62500
Mrs. A loan ----- and 50000
Creditors 90000 and 102500
Assets
Cash 10000 & 9000
Debtors 87500 & 96000
Stock 62500 55000
Land 50000 75000
Building 125000 137500
Machinery 200000 215000
During the year mr. bhushan (Propritor ) had withdraw rs. 65000 for personal use , the provision for depreciation against machinery opening was RS. 67500 and closing was RS. 90000
Cash flow statement ( with indirect method)
A – category
Cash flow from operating activity
Net profit as per capital account
( 372500-65000-370000 =67500 ) 67500
Add non cash expenses and losses
1 depreciation 22500
Closing – opening
(90000-67500)
2. credit purchase or increase in creditor 12500
(102500-90000)
3. Decrease in closing stock
(55000-62500) 7500
____________________________________________
110000
Less credit sale or increase in debtors
(-) 8500
__________________________________________
Net cash flow of operating activity (+) 101500 (+) 101500
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B- Category
Cash flow of investing activity
Outflow
Purchase of land (-) 25000
Purchase of building (-) 12500
Purchase of machinery (-) 37500
__________________________________________
Net cash flow of investing activity (-) 75000 (-) 75000
___________________________________________
C-Category
Cash flow of financing activity
Cash inflow
Mrs. A’s loan (+) 50000
Cash outflow
Drawing (-)65000
Bank loan repaid (-) 12500
____________________________________________
Net cash flow of financing activity (-) 27500 (-) 27500
Net cash flow of all category
(A+B+C) (-) 1000
Add opening balance of cash book (+) 10000
Closing balance of cash book (+) 9000
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