Question for Accounting
Sridhar is concerned about his company’s cash problem. From the following balance sheets and summary income statement, prepare a cash flow statement for the year ended December 31, 2009.
BALANCE SHEETS at December 31, 2008 and 2009 2009 2008 Rs. Rs Rs. Rs. Equity Share capital 60,000 50,000 Retained earnings 96,000 60,000 Total equity 156,000 110,000
Non-current liabilities Mortgage loan 35,000 40,000
Current liabilities Trade payables 39,000 27,000 Taxation payable 8,000 6,000 Bank overdraft 29,000 – 76,000 33,000 Total equity and liabilities 267,000 183,000
Non-current assets
Freehold property at cost 105,000 85,000 Plant and equipment – cost 72,000 54,000 – dep’n 38,000 28,000 34,000 26,000 Motor vehicles – cost 32,000 20,000 – dep’n 19,000 10,000 13,000 10,000 152,000 121,000 Current assets Inventory 69,000 28,000 Trade receivables 46,000 24,000 Cash at bank – 10,000 115,000 62,000 Total assets 267,000 183,000
INCOME STATEMENT for the year ended December 31, 2009 Sales 400,000 Cost of goods sold (300,000) Gross profit 100,000 Other costs (46,000) Operating profit 54,000 Interest paid (5,000) 49,000 Taxation (8,000) Net profit for the year 41,000
(a) Dividends declared and paid Rs.5,000
(b) Interest charged and paid for the year was Rs. 5,000. During the year, the company had sold equipment for Rs. 3,000 that originally cost Rs. 10,000 and had a written down carrying amount of Rs. 8,000 at the time of
BALANCE SHEETS at December 31, 2008 and 2009 2009 2008 Rs. Rs Rs. Rs. Equity Share capital 60,000 50,000 Retained earnings 96,000 60,000 Total equity 156,000 110,000
Non-current liabilities Mortgage loan 35,000 40,000
Current liabilities Trade payables 39,000 27,000 Taxation payable 8,000 6,000 Bank overdraft 29,000 – 76,000 33,000 Total equity and liabilities 267,000 183,000
Non-current assets
Freehold property at cost 105,000 85,000 Plant and equipment – cost 72,000 54,000 – dep’n 38,000 28,000 34,000 26,000 Motor vehicles – cost 32,000 20,000 – dep’n 19,000 10,000 13,000 10,000 152,000 121,000 Current assets Inventory 69,000 28,000 Trade receivables 46,000 24,000 Cash at bank – 10,000 115,000 62,000 Total assets 267,000 183,000
INCOME STATEMENT for the year ended December 31, 2009 Sales 400,000 Cost of goods sold (300,000) Gross profit 100,000 Other costs (46,000) Operating profit 54,000 Interest paid (5,000) 49,000 Taxation (8,000) Net profit for the year 41,000
(a) Dividends declared and paid Rs.5,000
(b) Interest charged and paid for the year was Rs. 5,000. During the year, the company had sold equipment for Rs. 3,000 that originally cost Rs. 10,000 and had a written down carrying amount of Rs. 8,000 at the time of