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प्रश्न
State any two benefits of preparing 'Cash Flow Statement'.
उत्तर
Benefits of Cash Flow Statement
1. Short-term Financial Planning- This statement is very advantageous for short-term financial planning. It helps in assessing and forecasting the sources and utilisation of cash and cash equivalents during a particular period.
2. Reasons for Change in Cash Position- It is possible that sometimes a company may have surplus cash even in case of lower profits or deficiency of cash in spite of higher profits. In such a situation, Cash Flow Statement helps in analysing the reason for the such change in the balances of cash and cash equivalents.
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संबंधित प्रश्न
Following is the Balance Sheet of SN Ltd as at 31-3-2015:
S.N Ltd Balance Sheet as at 31-3-2015
| Particulars | Note No. | 31-03-2015 (Rs.) | 31-03-2014 (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 |
2,50,000 1,00,000
2,25,000
75,000 35,000 |
2,00,000 (25,000)
2,50,000
25,000 45,000 |
| Total | 6,85,000 | 4,95,000 | |
|
II. Assets 1. Non – Current Assets a) Fixed Assets Tangible assets Intangible b) Non – Current Investments 2. Current Assets a) Current Investments b) Inventories c) Cash and Cash Equivalents |
5 6
7
|
5,01,500 10,000 50,000
25,000 53,500 45,000 |
3,60,000 15,000 37,500
30,000 22,500 30,000 |
| Total | 6,85,000 | 4,95,000 |
| 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) |
1,00,000 |
(25,000) |
| 1,00,000 | (25,000) | ||
|
2.
|
Long term borrowings : 12 % Debentures |
2,25,000 |
2,50,000 |
| 2,25,000 | 2,50,000 | ||
|
3.
|
Short – term borrowings : Bank Overdraft |
75,000 |
25,000 |
| 75,000 | 25,000 | ||
|
4.
|
Short – term provisions Provisions for tax |
35,000 |
45,000 |
| 35,000 | 45,000 | ||
|
5.
|
Tangible Assets Machinery Accumulated Depreciation |
6,01,500 (1,00,000) |
4,10,500 (50,500) |
| 5,01,500 | 3,60,000 | ||
|
6.
|
Intangible Assets Goodwill |
10,000 |
15,000 |
| 10,000 | 15,000 | ||
|
7.
|
Inventories Stock in trade |
53,500 |
22,500 |
| 53,500 | 22,500 |
Additional Information
(i) 12% Debentures were redeemed on 31-3-2015
(ii) Tax Rs.35,000 was paid during the year
Prepare Cash flow Statement
Will 'acquisition of machinery by an issue of equity shares' be considered while preparing 'Cash Flow Statement'? Give reason in support of your answer.
The accountant of 'Nav Jeevan Limited' while preparing Cash Flow Statement added the proposed
dividend of the current year to net profit while calculating cash flow from operating activities. Was he correct in doing so? Give reason.
Prepare a Cash Flow Statement from the information given in the balance sheet of Simco Ltd. As at 31-3- 2013and 31-3-2012:
| Particulars | Note No. |
31-3-2013 Rs |
31-3-2012 Rs |
|
I. Equity and Liabilities 1. Shareholders' Funds a. Equity Share Capital b. Reserves and Surplus 2. Non-current Liabilities a. Long term-borrowing 3. Current liabilities a. Trade Payables |
2,00,000 90,000
87,500
10,000 |
1,50,000 75,000
87,500
76,000 |
|
| Total | 3,87,500 | 3,87,500 | |
|
II. Assets 1. Non- Current assets a. Fixed assets i. Tangible assets b. Non –Current Investment 2. Current assets a. Current-Investment (marketable) b. Inventory c. Trade receivable d. Cash and Cash equivalents |
1,87,500 1,05,000
12,500 4,000 9,500 68,500 |
1,40,000 1,02,500
33,500 5,500 23,000 84,000 |
|
| Total | 3,87,500 | 3,88,500 |
Notes to Account:
Note -1
| Particulars |
2013 Rs |
2012 Rs |
| Reserve and Surplus | ||
| Surplus( balance in the statement of profit and loss) | 90,000 | 75,000 |
Short term investments are not considered while preparing cash flow statement. Why?
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.
Compute cash from operations from the following figures:
(i) Profit for the year 2016-17 is a sum of Rs. 10,000 after providing for depreciation of Rs. 2,000.
(ii) The current assets and current liabilities of the business for the year ended March 31, 2016 and 2015 are as follows:
| Particular | March 31, 2016 (Rs) |
March 31, 2017 (Rs) |
| Trade Receivables | 14,000 | 15,000 |
| Provision for Doubtful Debts | 1,000 | 1,200 |
| Trade Payables | 13,000 | 15,000 |
| Inventories | 5,000 | 8,000 |
| Other Current Assets | 10,000 | 12,000 |
| Expenses payable | 1,000 | 1,500 |
| Prepaid Expenses | 2,000 | 1,000 |
| Accrued Income | 3,000 | 4,000 |
| Income received in advance | 2,000 | 1,000 |
From the following Balance Sheet of Yogeta Ltd., prepare cash flow statement:
| Particulars | Note No. | 31st March 2017 (Rs) |
31st March 2016 (Rs) |
| I) Equity and Liabilities | |||
|
1. Shareholders’ Funds |
|||
|
a) Share capital |
1 | 4,00,000 | 2,00,000 |
|
b) Reserves and surplus-Surplus |
2,00,000 | 1,00,000 | |
|
2. Non-current Liabilities |
|||
|
a) Long-term borrowings |
2 | 1,50,000 | 2,20,000 |
|
3. Current Liabilities |
|||
|
a) Short-term borrowings |
1,00,000 | - | |
|
(Bank overdraft) |
|||
|
b) Trade payables |
70,000 | 50,000 | |
|
c) Short-term provision |
50,000 | 30,000 | |
|
(Provision for taxation) |
|||
| Total | 9,70,000 | 6,00,000 | |
| II) Assets | |||
|
1. Non-current assets |
|||
|
a) Fixed assets |
|||
|
i) Tangible |
7,00,000 | 4,00,000 | |
|
2. Current assets |
|||
|
a) Inventories |
1,70,000 | 1,00,000 | |
|
b) Trade Receivables |
1,00,000 | 50,000 | |
|
c) Cash and cash equivalents |
- | 50,000 | |
| Total | 9,70,000 | 6,00,000 |
Notes to Accounts -
| Particulars | 31st March 2017 (Rs) |
31st March 2016 (Rs) |
| 1. Share capital | ||
|
a) Equity share capital |
3,00,000 | 2,00,000 |
|
b) Preference share capital |
1,00,000 | - |
| 4,00,000 | 2,00,000 | |
| 2. Long term borrowings | ||
|
Long-term loan |
- | 2,00,000 |
|
Long-term Rahul |
1,50,000 | 20,000 |
| 1,50,000 | 2,20,000 |
Additional Information:
Net Profit for the year after charging Rs. 50,000 as Depreciation was Rs. 1,50,000. Dividend paid on Share was Rs. 50,000, Tax Provision created during the year amounted to Rs. 60,000. 8% loan was repaid on March 31, 2017 and an additional 9% loan of Rs. 1,30,000 was obtained from Rahul on April 01, 2016.
"______ implies movement of cash in and out of 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"
Which one is Cash Outflows from operating activities?
Which one is Cash Inflows from investing activities?
Which one is Cash Outflows from investing activities?
Classify the following activity into operating activities, investing activities, financing activities or cash activities.
"Cash receipt from debtors"
Tax paid on dividend should be classified as which type of activity along with dividend paid.
Which of the following is not a cash outflow?
Which of the following shall be considered as an outflow of cash in the Cash Flow Statement?
Cash flow example from an Investing activity is:
Cash flow example from an operating activity is ______.
In case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from ______.
Maturity period for a Short-term Investment from the date of its purchase to be considered as cash equivalents should be:
