FINANCIAL ACCOUNTING CASH FLOW STATEMENT Question No.1: Crescent tools, INC Income Statement For the year ended December 2010 Rs. 95, 000 44,000 51,000 Sales Less: Cost of goods sold Gross Profit on sales Less : Operating Expenses (including depreciation of Rs.10,000) Loss on Sale of fixed asset Net Income 38, 600 1,000 12,400 Miracle Tool, INC Comparative balance Sheet Assets Cash & Cash equivalents Accounts receivables Inventory Plant & Equipment (net of accumulated depreciation) Totals Liabilities & Stockholder's Equity Accounts payable Debentures Share Capital Retained Earnings Total Requirement: Prepare Cash Flow Statement. December 31, 2010 2009 Rs. Rs. 7, 900 9, 700 6, 950 11, 500 36, 000 40, 000 65, 950 44, 000 116,800 105,200 16,000 80,000 20,800 116,800 20,800 20,000 56,000 8,400 105,200 Question No.2: Miracle Tool, INC Comparative balance Sheet December 31, 2013 2012 Rs. Rs. Cash & Cash equivalents 870 300 Accounts receivables 660 600 Inventory 780 700 3,500 2,400 (600) (450) 5,210 3,550 Accounts payable 610 450 Debentures 300 400 Capital Stock (no par value) 2800 2000 1500 700 5,210 3,550 Assets Plant & Equipment Accumulated depreciation Totals Liabilities & Stockholder's Equity Retained Earnings Total Requirement: Prepare Cash Flow Statement. Question No.3: The comparative statements of financial position of sony and Company as at December 31 are given below: 2012 2011 Non-Current Assets Rs. Rs. Fixed assets-at cost 825000 650000 Accumulated depreciation (40330) (25480) Fixed asset- NBV 784670 624520 Long term investment 150000 120000 Current Assets Inventories Accounts receivable Short term investment Prepayments Cash and bank 27000 37520 15000 2000 9200 25000 77520 10000 4500 10500 Total Assets 1025390 872040 Capital Share Capital 701090 618940 Long-term liabilities Long-term loan payable 100000 85000 Current Liabilities Accounts payable Bank overdraft Interest payable Accruals 150000 50000 15000 9300 125000 25000 11500 6600 Total Equity and Liabilities 1025390 Profit for the year ended 31st December 2012 was Rs.159, 650: Prepare Statement of Cash Flows using indirect method. 872040 Question No.4: The comparative statements of financial position of Asif and Company as at December 31 are given below: 2012 2011 Non-Current Assets Rs. Rs. Building 220,000 165,000 Accumulated depreciation (building) (48,000) (35,000) 172,000 130,000 Current Assets Inventories 65,000 40,000 Accounts receivable 120,000 75,000 Supplies 2,000 1,200 Marketable securities 30,000 38,800 Cash 56,000 25,000 Total Assets 445,000 310,000 Capital Share Capital Retained earnings 265,000 68,000 200,000 65,000 Long-term liabilities Long-term loan payable 50,000 --- Current Liabilities Accounts payable 62,000 45,000 Total Equity and Liabilities 445,000 310,000 Required: Prepare Statement of Cash Flows using indirect method. Question No.5: The comparative statements of financial position of Asif and Company as at December 31 are given below: 2012 2011 Non-Current Assets Rs. Rs. Fixed assets 50,000 35000 Accumulated depreciation (13870) (7320) 36130 27680 Long term investment 7000 5000 Current Assets Inventories Accounts receivable Short term investment Prepayments Cash 4000 10200 10000 1600 3600 3000 7600 5000 2000 1900 Total Assets 72530 52180 Capital Share Capital 48130 30080 Long-term liabilities Long-term loan payable 10000 9000 Current Liabilities Accounts payable Bank overdraft Interest payable Accruals 7000 3000 400 4000 8000 1000 800 3300 Total Equity and Liabilities 72530 52180 Profit for the year ended December 31st, 2012 was Rs. 7250 Required: Prepare Statement of Cash Flows using indirect method. Question No.6: Issued Capital Reserves Retained earnings Non-Current liabilities Current liabilities Trade & Other payables Short term borrowings Provision for taxation Total Equity & liabilities ASSETS Property plant & equipment Long Term Investment Long term deposits Current Assets Stock in trade Investment Loans & advances Trade debts Other receivables Cash & Bank balances Total Assets Sun Shine Industries Ltd Statement of Financial Position As at June 30,2011 2,011 2,010 43,009 43,009 4,059 3,860 154,497 110,523 201,565 157,392 38,436 36,634 16,794 4,981 21,775 261,776 28,624 6,217 34,841 228,867 39,146 3,569 2,411 34,999 3,231 1,902 38,707 13,980 32,307 77,911 39,904 13,841 216,650 261,776 23,611 14,527 28,834 82,992 30,927 7,844 188,735 228,867 Prepare the Cash flow statement for the year ended on 30 June 2011. Question No.7: Issued Capital Reserves Retained earnings Non-Current liabilities Current liabilities Trade & Other payables Short term borrowings Provision for taxation Total Equity & liabilities ASSETS Property, plant & equipment Long Term Investment Long term deposits Current Assets Stock in trade Investment Loans & advances Trade debts Other receivables Cash & Bank balances Total Assets Diamond Industries Ltd Statement of Financial Position As at June 30,2013 (Rs.) (Rs.) 2,013 2,012 90,000 90,000 467,035 484,212 52,960 57,224 609,995 631,436 18,171 2,219 36,551 85,323 9,722 131,596 759,762 244,634 648 245,282 878,937 96,105 193,785 334 102,118 236,876 207 90,179 66,254 53,799 77,377 162,410 19,519 469,538 759,762 169,272 63,624 24,614 110,827 162,410 8,989 539,736 878,937 Prepare the cash flow statement for the year ended 30 June 2013. Question No.8: Use the following data to construct a statement of cash flows using indirect methods. Cash Accounts receivable Prepaid insurance Inventory Fixed assets Accumulated Depreciation Total assets 2,012 4,000 25,000 5,000 37,000 316,000 (45,000) 342,000 2,011 14,000 32,500 7,000 34,000 270,000 (30,000) 327,500 Accounts payable Wages payable Note payable Capital stock Retained earnings Total Liabilities & Equity Rs.18000 4,000 173,000 106,000 59,000 342,000 Rs.16,000 7,000 160,000 100,000 60,500 327,500 For the year 2011 Sales Cost of goods sold Depreciation expense Insurance expense Wage Expense Profit 200, 000 (123,000) (15,000) (11,000) (50,000) 1,000 Question No.9: Use the following data to construct a statement of cash flows using indirect methods. Cash Accounts Receivable Inventory Prepaid Expenses Investments Land Buildings and Equipment Accumulated Depreciation Accounts Payable Accrued Liabilities Bonds Payable Note Payable Common Stock, (Rs.2 par value) Paid-in Capital in Excess of Par Value Retained Earnings 2012 30,000 410,000 300,000 20,000 50,000 560,000 2011 50,000 460,000 320,000 15,000 25,000 300,000 2,000,000 1,900,000 (800,000) (770,000) 2,570,000 2,300,000 300,000 40,000 500,000 150,000 120,000 50,000 800,000 - 200,000 160,000 710,000 670,000 550,000 620,000 Rs. 2,570,000 Additional information about 2012 transactions and events: (a) Net income was Rs.110,000. (b) Depreciation expense on buildings and equipment was Rs.30,000. Rs. 2,300,000