Skip to content
Numerical Questions · Q8
Q.

From the following Balance Sheets of Tiger Super Steel Ltd., prepare a Cash Flow Statement.

Balance Sheet of Tiger Super Steel Ltd.

ParticularsNote No.31 March 2017 (₹)31 March 2016 (₹)
I. Equity and Liabilities
1. Shareholders' Funds — a) Share capital11,40,0001,20,000
b) Reserves and surplus238,40026,400
2. Current Liabilities — a) Trade payables321,20014,000
b) Other current liabilities42,4003,200
c) Short-term provisions512,80011,200
Total2,14,8001,74,800
II. Assets
1. Non-current assets — Fixed assets: Tangible assets696,40076,000
Intangible assets18,80024,000
Non-current investments14,0004,000
2. Current assets — Inventories31,20034,000
Trade receivables43,20030,000
Cash and Cash Equivalents11,2006,800
Total2,14,8001,74,800

Notes to Accounts

Particulars31 March 2017 (₹)31 March 2016 (₹)
1. Share Capital: Equity share capital1,20,00080,000
10% Preference share capital20,00040,000
2. Reserves and surplus: General reserve12,0008,000
Balance in Statement of Profit and Loss26,40018,400
3. Trade payables: Bills payable21,20014,000
4. Other current liabilities: Outstanding expenses2,4003,200
5. Short-term provisions: Provision for taxation12,80011,200
6. Tangible assets: Land and building20,00040,000
Plant76,40036,000

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.

Uttarakhand UbseTextbookSubjective· 5mImportance★★★★★
78% · 36/46 Questions
🔒 Locked · start free trial →

You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.

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

ParticularsRs
Increase in Surplus (P&L): 26,400 - 18,4008,000
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 Tax36,000

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

ParticularsRs
Net Profit before Tax36,000
Add: Depreciation (Land & Building 20,000 + Plant 10,000)30,000
Add: Intangible assets amortised5,200
Operating Profit before Working Capital Changes71,200
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 Operations67,200
Less: Income Tax paid (opening provision)(11,200)
Net Cash from Operating Activities (A)56,000

B. Cash Flow from Investing Activities

ParticularsRs
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)

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests

Full access for 14 days. No credit card required.