From the following Balance Sheets of Tiger Super Steel Ltd., prepare a Cash Flow Statement.
Balance Sheet of Tiger Super Steel Ltd.
| Particulars | Note No. | 31 March 2017 (₹) | 31 March 2016 (₹) |
|---|---|---|---|
| I. Equity and Liabilities | |||
| 1. Shareholders' Funds — a) Share capital | 1 | 1,40,000 | 1,20,000 |
| b) Reserves and surplus | 2 | 38,400 | 26,400 |
| 2. Current Liabilities — a) Trade payables | 3 | 21,200 | 14,000 |
| b) Other current liabilities | 4 | 2,400 | 3,200 |
| c) Short-term provisions | 5 | 12,800 | 11,200 |
| Total | 2,14,800 | 1,74,800 | |
| II. Assets | |||
| 1. Non-current assets — Fixed assets: Tangible assets | 6 | 96,400 | 76,000 |
| Intangible assets | 18,800 | 24,000 | |
| Non-current investments | 14,000 | 4,000 | |
| 2. Current assets — Inventories | 31,200 | 34,000 | |
| Trade receivables | 43,200 | 30,000 | |
| Cash and Cash Equivalents | 11,200 | 6,800 | |
| Total | 2,14,800 | 1,74,800 |
Notes to Accounts
| Particulars | 31 March 2017 (₹) | 31 March 2016 (₹) |
|---|---|---|
| 1. Share Capital: Equity share capital | 1,20,000 | 80,000 |
| 10% Preference share capital | 20,000 | 40,000 |
| 2. Reserves and surplus: General reserve | 12,000 | 8,000 |
| Balance in Statement of Profit and Loss | 26,400 | 18,400 |
| 3. Trade payables: Bills payable | 21,200 | 14,000 |
| 4. Other current liabilities: Outstanding expenses | 2,400 | 3,200 |
| 5. Short-term provisions: Provision for taxation | 12,800 | 11,200 |
| 6. Tangible assets: Land and building | 20,000 | 40,000 |
| Plant | 76,400 | 36,000 |
Additional Information: Proposed dividend for 2016-17 is ₹15,600 and for 2015-16 is ₹11,200. Depreciation charged during the year was ₹20,000 on Land & Building and ₹10,000 on Plant.
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Start your 14-day free trial to unlock the full solution →Cash Flow Statement of Tiger Super Steel Ltd. for the year ended 31 March 2017: Operating ₹56,000; Investing ₹(60,400); Financing ₹8,800; net increase in cash ₹4,400, taking cash from ₹6,800 to ₹11,200.
Prepared under AS-3 (Revised) - Indirect Method. All figures in Rs.
Working Note 1 - Net Profit before Tax
| Particulars | Rs |
|---|---|
| Increase in Surplus (P&L): 26,400 - 18,400 | 8,000 |
| Add: Transfer to General Reserve (12,000 - 8,000) | 4,000 |
| Add: Dividend paid during the year (2015-16 proposed) | 11,200 |
| Add: Provision for taxation (current year) | 12,800 |
| Net Profit before Tax | 36,000 |
The current-year proposed dividend of ₹15,600 is only a note (not yet a liability) and is not recorded. The intangible assets fell from ₹24,000 to ₹18,800, i.e. ₹5,200 amortised - a non-cash charge added back below.
A. Cash Flow from Operating Activities
| Particulars | Rs |
|---|---|
| Net Profit before Tax | 36,000 |
| Add: Depreciation (Land & Building 20,000 + Plant 10,000) | 30,000 |
| Add: Intangible assets amortised | 5,200 |
| Operating Profit before Working Capital Changes | 71,200 |
| Add: Decrease in Inventories (34,000 - 31,200) | 2,800 |
| Less: Increase in Trade Receivables (43,200 - 30,000) | (13,200) |
| Add: Increase in Trade Payables / Bills Payable (21,200 - 14,000) | 7,200 |
| Less: Decrease in Other Current Liabilities (3,200 - 2,400) | (800) |
| Cash Generated from Operations | 67,200 |
| Less: Income Tax paid (opening provision) | (11,200) |
| Net Cash from Operating Activities (A) | 56,000 |
B. Cash Flow from Investing Activities
| Particulars | Rs |
|---|---|
| Purchase of Plant (76,400 - [36,000 - 10,000]) | (50,400) |
| Purchase of Non-current Investments (14,000 - 4,000) | (10,000) |
| Net Cash used in Investing Activities (B) | (60,400) |
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