Question

Prepare a Cash Flow Statement on the basis of the information given in the Balance Sheets of Liaba Ltd., as at 31st March , 2013 and 31st March 2012:

Answer 1

Correct Answer - Cash Flow form Operating Activities = ₹ 1,52,000;Cash Used in Investing Activites = ₹ 3,62,000; Cash Flow from Financing Activities = ₹ 1,50,000; Net Decrease in Cash and Cash Equivalents = ₹60,000.

Answer 2

Cash Flow Statement

for the year ended March 31, 2013

               Particulars           Details

(Rs)        Amount

(Rs)

A             Cash from Operating Activities                   

               Net Profit                          1,00,000

               Operating Profit Before Working Capital Changes                            1,00,000

               Add: Decrease in Current Assets                

                           Inventories            6,000    

                           Trade Receivables              54,000  

               Less: Decrease in Current Liabilities                         

                           Trade Payables     (8,000)  52,000

                                              

               Cash Generated from Operations                            1,52,000

               Less: Tax Paid                   -

               Net Cash Flow from Operating Activities                               1,52,000

                                              

B             Cash From Investing  Activities                   

               Purchase of Tangible Assets         (2,90,000)           

               Purchase on Non Current Investment      (72,000)              

                                              

               Net Cash Used in Investing Activities                      (3,62,000)

                                              

C             Cash From Financing Activities                   

               Issue of Share Capital     2,00,000             

               Long Term Borrowings   (50,000)              

                                              

               Net Cash Flow from Financing Activities                1,50,000

                                              

D            Net Decrease in Cash and Cash Equivalents                         (60,000)

               Add: Cash and Cash Equivalents in the beginning of the period (70,000 + 1,34,000)                             2,04,000

                Cash and Cash Equivalents at the end of the period (94,000 + 50,000)                     1,44,000