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प्रश्न
What is meant by 'Cash Flows' ?
Short Answer Question
State the meaning of the term: Cash flows
उत्तर १
Cash Flows refer to cash inflows and cash outflows in a firm.
उत्तर २
The amount of cash and cash equivalents coming in and out of the business of a company is termed as Cash Flow.
उत्तर ३
‘Cash Flows’ implies the movement of cash in and out due to some non-cash items. Receipt of cash from a non-cash item is termed as cash inflow while cash payment in respect of such items as cash outflow.
Examples of cash flows include the collection of cash from trade receivables, payment to trade payables, payment to employees, receipt of dividends, interest payments, etc.
APPEARS IN
संबंधित प्रश्न
Following is the Balance Sheet of K K Ltd as at 31-3-2015:
K.K. Ltd Balance Sheet as at 31-3-2015
| Particulars | Note No. | 31-3-2015 (Rs.) | 31-3-2014 (Rs.) |
|
I. Equity and Liabilities 1. Shareholder’s Funds a. Share Capital b. Reserve and Surplus 2. Non - Current Liabilities a) Long – term borrowings 3. Current Liabilities a) Short – term borrowings b)Short – term provisions |
1
2
3 4 |
10,00,000 4,00,000
9,00,000
3,00,000 1,40,000 |
8,00,000 (1,00,000)
10,00,000
1,00,000 1,80,000 |
| Total | 27,40,000 | 19,80,000 | |
|
II. Assets 1. Non – Current Assets a) Fixed Assets Tangible assets Intangible assets b) Non – Current Investments 2. Current Assets a) Current Investments b) Inventories c) Cash and Cash |
5 6
7
|
20,06,000 40,000 2,00,000
1,00,000 2,14,000 1,80,000 |
14,40,000 60,000 1,50,000
1,20,000 90,000 1,20,000 |
| Total | 27,40,000 | 19,80,000 |
| Note No | Particulars | 31-3-2015(Rs.) | 31-3-2014(Rs.) |
|
1.
|
Reserve and Surplus (Surplus i.e. Balance in Statement of Profit and Loss) |
4,00,000 |
(1,00,000) |
| 4,00,000 | (1,00,000) | ||
|
2.
|
Long term borrowings : 12 % Debentures |
9,00,000 |
10,00,000 |
| 9,00,000 | 10,00,000 | ||
|
3.
|
Short – term borrowings : Bank Overdraft |
3,00,000 |
1,00,000 |
| 3,00,000 | 1,00,000 | ||
|
4.
|
Short – term provisions Provisions for tax |
1,40,000 |
1,80,000 |
| 1,40,000 | 1,80,000 | ||
|
5.
|
Tangible Assets Machinery Accumulated Depreciation |
24,06,000 (4,00,000) |
16,42,000 (2,02,000) |
| 20,06,000 | 14,40,000 | ||
|
6.
|
Intangible Assets Goodwill |
40,000 |
60,000 |
| 40,000 | 60,000 | ||
|
7.
|
Inventories Stock in trade |
2,14,000 |
90,000 |
| 2,14,000 | 90,000 |
Additional Information
(i) 12% Debentures were redeemed on 31-3-2015
(ii) Tax 1,40,000 was paid during the year
Prepare Cash flow Statement.
State the primary objective of preparing a Cash Flow Statement.
'Interest received and paid' is considered as which type of activity by a finance company while preparing a Cash Flow Statement?
Will 'Net decrease in working capital' other than cash and cash equivalents, increase, decrease or not change Cash Flow from Operating Activities? Give reason in support of your answer.
While preparing the Cash Flow Statement of Alka Ltd. 'dividend paid' was shown as an operating
activity by the accountant of the company. Was he correct in doing so? Give reason.
While preparing Cash Flow Statement, the accountant of a financing company showed 'Dividend Received Rs 50,000 on investments' as an investing activity. Was he correct in doing so? Give reason.
While preparing 'Cash Flow Statement', the accountant of 'Jain Limited', a financing company, showed dividend received on investments as investing activity. Was he correct in doing so? Give reason.
State the objective preparing ‘Cash Flow Statement’.
Answer the following question:
State any one objective of preparing Cash Flow Statement.
State with reason whether deposit of cash into Bank will result into inflow, outflow or no flow of cash.
List any two investing activities which result into outflow of cash.
From the following Balance Sheets of B.C.R. Ltd as on 31-3-2010 and 31-3-2011.
Prepare a Cash Flow Statements:
|
Balance Sheets of B.C.R. Ltd. as on 31.3.2010 and 31.3.2011 |
|||||
|
Liabilities |
31-3-2010 Rs |
31-3-2011 Rs |
Assets |
31-3-2010 Rs |
31-3-2011 Rs |
|
Equity Shares Capital Profit and Loss Account Bank Loan Proposed Dividend Provision for tax Creditors |
5,00,000
2,00,000
1,00,000 50,000 30,000 55,000 |
7,00,000
3,50,000
50,000 70,000 50,000 52,000 |
Patents Equipment Investment Debtors Stock Bank |
1,00,000 5,00,000 – 80,000 55,000 2,00,000 |
95,000 5,00,000 1,00,000 1,30,000 3,00,000 |
|
|
|
||||
|
9,35,000 |
12,72,000 |
|
9,35,000 |
12,72,000 |
|
|
|
|
|
|||
Additional Information:
During the year Equipment costing Rs 1,00,000 was purchases. Loss on sale of Equipment amounted to Rs 12,000. Rs 18,000 deprecation charged on Equipment.
From the following Balance Sheets, Prepare a Cash Flow Statements as per AS- 3 (revised)
|
Liabilities |
2008 Amount Rs |
2009 Amount Rs |
Assets |
2008 Amount Rs |
2009 Amount Rs |
|
Share Capital |
12,000 |
15,000 |
Furniture |
5,000 |
8,000 |
|
P & L Account |
5,000 |
6,000 |
Stock |
6,000 |
4,000 |
|
Creditors |
15,000 |
11,000 |
Debtors |
10,000 |
8,000 |
|
|
|
|
Cash |
11,000 |
12,000 |
|
|
32,000 |
32,000 |
|
32,000 |
32,000 |
|
|
|
|
|
|
|
A dividend of Rs 3,000 was paid during the year 2008-09
Long Answer Question
Explain the major Cash Inflows and outflows from financing activities.
From the information given below you are required to calculate the cash paid for the inventory:
|
Particulars |
(Rs) |
|
Inventory in the beginning |
40,000 |
|
Credit Purchases |
1,60,000 |
|
Inventory in the end |
38,000 |
|
Trade payables in the beginning |
14,000 |
|
Trade payables in the end |
14,500 |
What are the benefits of cash flow statements ______?
From the following information, calculate cash flows from financing activities:
Long-term Loans Rs. 2,09,000 Rs. 2,50,000
During the year, the company repaid a loan of Rs. 1,00,000.
Balance Sheet (Extract)
| Liabilities | 30-03-2018 (₹) | 31-03-2017 (₹) |
| Fixed Assets | 23,80,000 | 17,50,000 |
Depreciation on fixed assets was ₹ 2,00,000 for the year. How much amount for 'Purchase of fixed assets' will be shown in investing activity for cash flow statement prepared on 31st March, 2018?
Which of the following is not an investing cash flow?
