From the following Balance Sheets of Sonam Ltd as on 31-3-2012 and 31-3-2011.
Prepare a Cash Flow Statements:
Liabilities |
31-3-2011 Rs |
31-3-2011 Rs |
Assets |
31-3-2011 Rs |
31-3-2011 Rs |
Equity Shares Capital Profit and Loss Account Bank Loan Proposed Dividend Provision for tax Creditors |
1,00,000
25,000
50,000 20,000
10,000 15,000
|
1,50,000
50,000
25,000 15,000
17,500 11,250 |
Patents Building Investment Debtors Stock Cash
|
12,500 1,50,000 - 50,000 2,500 5,000 |
11,250 1,50,000 18,750 3,750 21,250 |
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2,20,000 |
2,68,750 |
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2,20,000 |
2,68,750 |
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Additional Information:
During the year a Building having book value Rs 50,000 was sold at a loss of Rs 2,000 and depreciation charged on Building was Rs 4,000.
Cash Flow Statement Activities:
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Particulars |
Amount Rs |
Amount Rs |
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a)Cash Flow from Operating Activities |
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Profit during the year 25,000 |
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Proposed Dividend 15,000 |
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Provision for Taxation 17,500 |
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Profit before Taxation |
57,500 |
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Add: non cash and non-operating expenses |
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Depreciation |
4,000 |
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Loss on Sale of Assets |
2,000 |
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Patents Written-off |
1,250 |
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Operating Profit before Working Capital Changes |
64,750 |
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Less: |
Increase in current assets and decrease in current liabilities Increase in Debtors |
(13,750) |
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Increase in Stock |
(1,250) |
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Decrease in Creditors |
(3,750) |
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Profit from operation before Tax paid |
46,000 |
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Less: |
Tax paid |
10,000 |
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Net Cash flow from Operating Activities |
36,000 |
36,000 |
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(B) Cash Flow from Investing Activities |
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Proceeds from Sale of Building |
48,000 |
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Less: |
Purchase of Building |
(54,000) |
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Less: |
Purchase of Investment |
(18,750) |
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Net Cash flow from Investing Activities |
(24,750) |
(24,750) |
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(C) Cash Flow from Financing Activities |
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Proceeds from Issue of Share |
50,000 |
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Less: |
Repayment of loan |
(25,000) |
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Less: |
Dividend Paid |
(20,000) |
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Net Cash flow from Financing Activities |
5,000 |
5,000 |
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Net Increase in Cash and Cash Equivalents(A+B+C) |
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16,250 |
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Add: |
Cash at the beginning |
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5,000 |
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Cash at the end |
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21,250 |
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Working Notes:
Building Account |
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Dr. |
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Cr. |
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Date |
Particulars |
Amount Rs |
Date |
Particulars |
Amount Rs |
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Balance b/d |
1,50,000 |
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Depreciations |
4,000 |
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Sale |
48,000 |
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Profit and loss a/c |
2,000 |
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Bank A/c (Purchase-Balancing figure) |
54,000 |
By balance c/d |
1,50,000 |
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2,04,000 |
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|
2,04,000 |
State any one limitation of 'Analysis of Financial Statements'.
From the following 'Statement of Profit & Loss' for the year ended 31st March, 2013, prepare a 'Comparative Statement of Profit & Loss' of Good Service Ltd.
Particulars |
Note No. |
2012-2013 |
2011-2012 |
Revenue from operations |
|
20,00,000 |
15,00,000 |
Rate of income tax was 50%.
State any one objective of Financial Statement Analysis.
State the significance of Analysis of Financial Statements to the Lenders.