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Cash Flow Analysis for Raja Ltd.

This document provides a cash flow statement for Raja Ltd. for the year ended March 31, 2015. It shows a net cash inflow from operating activities of Rs. 80,000, a net cash outflow from investing activities of Rs. 35,000 from purchases of investments and plant/machinery, and a net cash outflow from financing activities of Rs. 38,000 from share issuance proceeds, loan payments, dividends paid, and overdraft payment. The overall net cash flow for the year was an inflow of Rs. 7,000, leading to a total cash and cash equivalents balance of Rs. 12,000 at the end of the period.

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160 views3 pages

Cash Flow Analysis for Raja Ltd.

This document provides a cash flow statement for Raja Ltd. for the year ended March 31, 2015. It shows a net cash inflow from operating activities of Rs. 80,000, a net cash outflow from investing activities of Rs. 35,000 from purchases of investments and plant/machinery, and a net cash outflow from financing activities of Rs. 38,000 from share issuance proceeds, loan payments, dividends paid, and overdraft payment. The overall net cash flow for the year was an inflow of Rs. 7,000, leading to a total cash and cash equivalents balance of Rs. 12,000 at the end of the period.

Uploaded by

sejanahmad48
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SOLUTION

PROJECT – 2

Page 1|3
Cash Flow Statement for Raja Ltd.
for the year ended 31st March, 2015

Details Total
Particulars
₹ ₹

A. Cash flow from Operating Activities:


Net profit before tax 85,000
Adjustments for non-cash and non-operating items:
Add: Amortisation of intangible Assets 6,000
Depreciation on Plant 14,000
Depreciation on Building 10,000

Operating profit before working capital changes 1,15,000

Add: Increase in Current Liabilities & Decrease in Current Assets:


Inventories 4,000
Less: Decrease in Current Liabilities & Increase in Current Assets:
Trade Receivables (10,000)
Trade Payables (3,000)

Net Cash generated from operating activities 1,06,000


Less: Tax Paid (26,000)

Net Cash from Operating Activities 80,000 80,000

B. Cash flow from Investing Activities:


Purchase of Non-current Investments (6,000)
Purchase of plant and Machine (29,000)

Net Cash used in Investing Activities (35000) (35,000)

C. Cash flow from Financial Activities:


Proceeds from Issue of Share Capital 50,000
Bank Loan Paid (60,000)
Dividend Paid (25,000)
Payment of Bank Overdraft (3,000)

Net Cash used in Financial Activities (38,000) (38,000)

Net Cash Flow [A + B + C] 7,000


Add: Cash and Cash equivalent at the beginning of the period 5,000

Cash and cash equivalents at the end of the period 12,000

Page 2|3
Calculation of Profit before Tax

Particulars ₹
Surplus as per Profit and Loss Statement (₹ 34,000 - ₹ 30,000) 4,000
Add: Dividend Paid 25,000
Transfer to General Reserve 23,000
Provision for Tax 33,000
Profit before Tax 85,000

Provision for Tax Account

Particulars ₹ Particulars ₹
To Cash A/c 26,000 By Balance b/d 22,000
To Balance c/d 29,000 By Profit & Loss Statement 33,000
[Balancing Figure]
55,000 55,000

Plant and Machinery Account

Particulars ₹ Particulars ₹
To Balance b/d 1,40,000 By Depreciation A/c 14,000
To Cash A/c 29,000 By Balance c/d 1,55,000
[Balancing Figure]
1,69,000 1,69,000

Page 3|3

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