Page 117 - DCOM302_MANAGEMENT_ACCOUNTING

Management Accounting

Notes Accumulated depreciation on building and equipments 1,20,000 1,32,000

9,07,800 10,35,000
Cost of equipment sold was ` 72,000.
Solution:

Direct Method
SLV Limited
Cash Flow Statement for the year ended 31.3.2007

` `
Cash Flows from Operating Activities:
Cash receipts from customers 25,02,000
Cash paid to suppliers and employees 21,15,200
Cash generated from operations 3,86,800
Income tax paid (86,800)
Net Cash from Operating Activities 3,00,000
Cash Flows from Investing Activities:
Purchase of land (48,000)
Purchase of building and equipment (2,88,000)
Sale of equipment 36,000
Net Cash used in Investing Activities (3,00,000)
Cash Flows from Financing Activities:
Issue of share capital 84,000
Dividend paid (72,000)
Net Cash from Financing Activities 12,000
Net Increase in Cash and Cash Equivalents 12,000
Cash and Cash Equivalents at the beginning 60,000
Cash and Cash Equivalents at the end 72,000

Working Notes
(i) Cash receipts from customers:
Sales revenue 25,20,000
Add: Debtors at the beginning 1,68,000
26,88,000
Less: Debtors at the end 1,86,000
25,02,000
(ii) Cash paid to suppliers and employees:
Cost of goods sold 19,80,000
Add: Operating expenses 80,000
Salaries and wages 2,40,000
23,00,000
Add: Creditors at the beginning 2,40,000
Stock at the end 96,000
Advances at the end 9,000
Outstanding expenses at the beginning 24,000 3,69,000
26,69,000
Contd…

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