question_answer

From the following balance sheet of ABS Ltd as at 31st March, 2016 and 2017, prepare cash flow statement for the year ended 31st March, 2017. Balance Sheet as at 31st March, 2016 and 2017

	Particulars	Note No.	31st March, 2016 Amt (Rs.)	31st March, 2017 Amt (Rs.)
I.	EQUITY AND LIABILITIES
	1. Shareholders' Funds
	(a) Share Capital	1	13,50,000	14,15,000
	(b) Reserves and Surplus	2	2,70,000	7,02,000
	2. Non-current Liabilities
	Long-term Borrowings : 14% Debentures		2,70,000	5,40,000
	3. Current Liabilities		2,16,000	4,32,000
	Total		21,06,000	30,89,000
II.	ASSETS
	1. Non-current Assets
	(a) Fixed Assets		13,77,000	16,74,000
	(b) Non-current Investments		81,000	2,16,000
	2. Current Assets
	(a) Cash and Cash Equivalents		1,08,000	3,89,000
	(b) Other Current Assets		5,40,000	8,10,000
	Total		21,06,000	30,89,000

Notes to Accounts

Particulars	2016 Amt (Rs.)	2017 Amt (Rs.)
1. Share Capital
Equity Share Capital	8,10,000	11,45,000
Preference Share Capital	5,40,000	2,70,000
2. Reserves and Surplus
Statement of Profit and Loss	2,70,000	7,02,000

Additional Information

(i) Depreciation charged on fixed assets was Rs. 1,62,000.

(ii) Interim dividend of 15% paid on equity shares. Additional shares issued at 31st March, 2017.

(iii) Preference shares were redeemed at a premium of 15%.

(iv) Fixed assets with a book value of Rs. 1,08,000 were sold at Rs. 67,500.

(v) Preference dividend paid Rs. 64,800.

(vi) Debentures interest paid during the year Rs. 37,800.

Answer:

Net cash from operating activities = Rs. 8,45,100 Net cash used in investing activities = Rs. 6,34,500 Newt cash from financing activities = Rs. 70,400