Chemalite Case

Cash Flow Statement for the year ended Dec 31st 2005
Particular Amount
Opening Cash 113000
Operating Activities
Net Income 183,925.00
Non Cash Items
Add: Depreciation 61,625.00
Add: Amortization of Patent 25,000.00

Non-operating Items
Less: Gain on Sale of Equipment (24,250.00)
Add: Interest Expenses 58,750.00

Increase/decrease of CA/CL
Less: A/R increase (70,030.00)
Less: Inventories RM increase (20,450.00)
Less: Inventories FG Increase (99,680.00)
Less: Decrease in Prepaid insurance (65,000.00)
Cash flow from operating before Taxes 49,890.00

Adjustment for taxes

Income Taxes Paid (39,150.00)

Net Cash Flow from operating activity 10,740.00

Investing Activities
Land and Building (425,000.00)
Machinery (520,000.00)
Sale of old Machinery 215,500.00

Cash Flow from Investing Activity (729,500.00)

Financing Activity
Dividend Paid (10,000.00)
share Buyback (26,000.00)
Bank Loan 510,000.00
Interest (58,750.00)
Short Term Debt 200,000.00
Cash Flow from Financing activity 615,250.00

Net Cash flow (103,510.00)

Cash balance at the end 9,490.00
Non Cash Items
Depreciation 61,625.00
Amortization of Patent 25,000.00

Increase in Assets
Increase in A/R 70,030.00
Increase in inventories raw materials 20,450.00
Increase in Finished goods 104,680.00
Less: Depreciation charged (5,000.00)
Final increase in Finished Goods 99,680.00

Tax Adjustment
Tax payable (2004) 10,900.00
Tax applicable for 2005 64,930.00
Less: Taxes Payable as per B/S 2005( Tax payable + Deferred Tax payable) 36,680.00
Tax paid during 2005 39,150.00

Non Operating Expenses

Gain on sale of Equipment 24,250.00
Interest Expenses 58,750.00