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प्रश्न
Net increase in working capital other than cash and cash equivalents will increase, decrease or not change cash flow from operating activities. Give reason in support of your answer.
उत्तर
Net increase in working capital means that the decrease in current assets and increase in current liabilities (↓ in CA & ↑ in CL, being the inflows) is more than the increase in current assets and decrease in current liabilities (↑ in CA & ↓ in CL, being outflows). So, the net effect is increase in cash flow from operating activities.
संबंधित प्रश्न
Give the meaning of ‘Cash Equivalents’ for the purpose of preparing Cash Flow Statement.
Prepare a Cash Flow Statement from the information given in the balance sheet of live Ltd. as at 31-3-2013and 31-3-2012:
| Balance Sheet of Tiger Super Steel Ltd |
|||
| Particulars | Note No. | 31-3-2015 (Rs.) | 31-3-2014 (Rs.) |
|
I. Equity and Liabilities 1. Shareholder’s Funds a. Equity Share Capital b. Reserve and Surplus 2. Non - Current Liabilities a) Long term borrowings 3. Current Liabilities a) Trade Payables |
1 |
2,10,000 1,32,000
1,50,000
75,000 |
1,80,000 24,000
1,50,000
27,000 |
| Total | 5,67,000 | 3,81,000 | |
|
II. Assets 1. Non – Current Assets a) Fixed Assets Tangible assets b) Non – Current Investments 2. Current Assets a) Current Investments (marketable) b) Inventories c) Trade Receivable c) Cash and Cash equivalents |
2,94,000 48,000
54,000 1,07,000 40,000 24,000 |
2,52,000 18,000
60,000 24,000 17,500 9,500 |
|
| Total | 5,67,000 | 3,81,000 | |
|
Notes to Account: Note -1 |
||
| Particulars | 2013 (Rs.) | 2012 (Rs.) |
|
Reserve and Surplus Surplus (balance in statement of profit and loss) |
1,32,000 |
24,000 |
The accountant of Manav Ltd. while preparing Cash Flow Statement added depreciation provided on fixed assets to net profit for calculating cash flow from operating activities. Was he correct in doing so? Give reason.
While preparing Cash Flow Statement, the accountant of 'Rachana Ltd.', a financing company, included 'Interest received on loan' in financing activities. Was the correct in doing so? Give reason.
J.K. Ltd. purchased machinery on deferred payment basis. During the year ended 31.3.2016 the company paid in instalment of Rs 4,00,000 which included interest of Rs 40,000. While preparing cash flow statement, under which type of activities will this payment be classified? Also, mention the amount involved in each activity.
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 |
|
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 deprecation charged on Building was Rs 4,000
Short Answer Question
What is a Cash Flow Statement?
Short Answer Question
What are the objectives of preparing cash flow statement?
Long Answer Question
Describe"Indirect" method of ascertaining Cash Flow from Operating Activities.
"______ 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"
Name the activities which is related to long-term funds or capital of an enterprise?
Classify the following activity into operating activities, investing activities, financing activities or cash activities
"Proceeds from sales of old machinery"
Classify the following activity into operating activities, investing activities, financing activities or cash activities
"Cash credit"
Which item comes under Financial Activities in the Cash Flow statement?
Assertion (A): Buy-back of equity shares comes under financing activities.
Reason (R): Financing activities are the activities that result in a change in the size composition of the owner's capital and borrowing of the enterprise from other sources.
Cash flow example from an Investing activity is:
Dividend received by other than financial enterprise is shown in cash flow statement under ______.
Which of the following is not an inflow of cash?
State whether the following transaction will result in inflow, outflow or no flow of cash while preparing cash flow statement:
Issued bonus shares ₹ 5,00,000.
