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  • Cash Flow Examples Indirect Method

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    Aditya Dalvi
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    Cash flow examples indirect method

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    9 views21 pages

    Cash Flow Examples Indirect Method

    Uploaded by

    Aditya Dalvi

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    Download as pdf
    of 21
    Income taxes payable Long-term debt 1,110 Total liabilities 7,390 Shareholders’ Funds Share capital 1,500 Reserves 31410 Total shareholders’ funds ‘ 4900 Total liabilities and shareholders’ funds’ 6,800 Statement of Profit and Loss for the period Sales Cost of sales Gross profit Depreciation Administrative and selling expenses Interest expense Interest income Dividend income Foreign exchange loss Net profit before taxation and extraordinary item Extraordinary item—Insurance proceeds from earthquake disaster settlement Net profit after extraordinary item Income-tax Net profit meen cash Sr girect Method Cash Flow Statement [Paragraph 18(bj] (Rs.,"000) casn ows from operating activities 2996 cash pe before taxation, and extraordinary item 3,050 Jajustments for Depreciation ney Foreign exchange loss ab Interest income (200) Dividend income {200} Interest expense 7100 operating profit before working capital changes "3,740 Perease in sundry debtors {600}, ow Decrease in inventories 1,050 Decrease in sundry creditors 1,740) ‘ash generated from operations 2,550 Income taxes paid (860) Cash flow before extraordinary item 1,690 froceeds from earthquake disaster settlement 180 et cash from operating activities 1,870 Cash flows from investing activities Purchase of fixed assets (350) Proceeds from sale of equipment Interest received 200, ¢ Dividends received 160 Niet cash from investing activities vr 30 Cash flows from financing activities Proceeds from issuance of share capital 250 Proceeds from long-term borrowings 250 Repayment of long-term borrowings (180) Inerest paid 223 jvidends pai i ced (200) (h1s0) Neteash used in financing activities {et increase in cash and cash eauivese Ay tiga” ash sad Gash equivalents at beginning of period lee Note 1} att and cash equivalent: tend Notes to the cash flow statement geet method and indirect method) qth and Cash Equivalents te fith and each equivalents co Suyaieitd investments in money, nts included in the cash flow of period (see Note 1) jet of cash on hand and balances with sist of cash uments. cash and cash rimarket omprise the following balance & Risks 1996... 1995 Cash on hand and balances wth banks! 200 3 short-term investments: a Cash and cash equivalents Baia ay — changes eA Effect of exchange rate Cash and cash equivalents as restated a vant ah gi it et nel ems cof pub by sora aici, Re cape ey rim ren ets 02.000 ey otal tr pal during te year (including tax deducted gy n Pica ecaalhioe os | eruntive Preeestaton indirect mel weer demas iat oiee meted eas Aow stteneny Profit before working capital changes is sometimes presented ast “aR : Set Revenues exuinginvestnen some : Gowrangenpenseexcudingteprecntin od perating prot bore worl capital Changes 4 Working Noten E ;The working notes given below do not form part of the cash flow sq gna, accordingly, need not be published. ‘The purpose of Gay toa SS een rere ie menaruh er the oh flow Statement have ben dened Pigures are ea 1. Cash receipts from customers Sates a ARSE sundy debiors atthe beginning of the year oa 7 Less: Suny deblor atthe end ofthe year 3 Ba 2. Cash pad to suppliers and employees 2 Gost stctes 2st Aninistbe and sling expenses i ‘Add: Sundry creditors at the beginning of the year 1,800 Inventories at the end ofthe yo ne Of the ve 900 Less: Sundry creditors at the end of the year 150 Inventories at the beginning of the year 1,950 3, Income taxes paid (including tax déducted at source from: received) Income tax expense for the year (including tax deducted at source from dividends received) ‘Add : Income tax lability at the beginhing ofthe year ‘ess: Income tax liability atthe end of the year a, inetuden is ducted at source on dividends received (amour £0); included in cash flows from investing weeps veeeines ciance Slashed in cnh gt tego estan eles nd ths a) operating activities (see paragraph 4. Repayment of long-term borrowing? ee P y ong: term debt atthe beginner oem a Ada Loneteem bor ows during the year y if ne Financial sore Bi Dither than Financial Taatieation Direct Method ‘aah fs from Operating Aatities Grtef Gaai receipes from customers E ("9 aah pid uppers and cnloyece H Segencrated irom operating activities (ia Income tax paid (ii) Proceeds from extraordinary items (i) Income tax paid iy Proceeds from extraordinary items aah flaws from hancing Aethites eats erm noua Sate capa {th Proveeds ‘Proceeds from long-term borrow 3 ‘Repayment of long-term borrowings | interest paid a Dividend paid Cash flows from Investing Activities idend received 1m Financing Activities ies of shares ‘ r 00iend 31 ae aand B00 3 om “* snes — 742001 parszaoot | 8 12.200 1Were a5 folloy,. Sea Bildine [sae mms scpe Sereaiaa ke or ee dae pa atari eedg-avearh 18 net mgpOT amour Stn ain a pont any ean len ete Praca ee Tareas me tame amt ha — rerease oxsaets: Debtors (50,000 ~ 20,000) (0,00 Qesec arent ea tek 135,000 25.000) f Pestana Greitors (4,000 80,000) 4.000 {Ca genera rom operauons income tax paid ee lt Sxtraorainay tems Revisor Opraung Aties ites Sones Sees, 130.000 Be Ss Whoo 22693 cee a Evan acn BES e tb aoon 5009, eee eee ea Ret ack toon Financing Activities Net decrease in Cash and Cash equivalents (Cash and Cash equivalents at begining of the period Cash and Cash equivalents atthe end ofthe period 1. Drawings elance of capital eas . Less: Closing balance of aptal Withdrawals o Drawings x 7 st ae z FT epreciation R3. 3,000) was =, 10,000( te Ado 1-1-2001 was Re 230 i Machinery Oe ted to Rs 48,000, Yen 2. ‘Machinery. Account Foams ee Benen rece 8 Lomo su machinery BRK ee

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