Financial Accounting Assignment by Vivek Patodia(Roll 309)

25. FastForward had cash inflows from operations of Rs.62,500; cash outflows from investing activities of Rs.47,000; and
cash inflows from financing of Rs.25,000. The net change in cash was:

Answer: Net Change in Cash = CFO + CFI + CFF = 62,500 - 47,000 + 25,000
(Option A) Increase in Rs. 40,500

26. If beginning retained earnings was Rs.184,300, the company distributed Rs.46,000 in dividends, and ending retained
earnings was Rs.345,000, what was the net income for the period?

Answer: Net Income for the period = Closing RE - Opening RE + Distributions made
Net Income for the period = 345,000 - 184,300 + 46,000
(Option B) Rs.206,700

27. Beginning assets were Rs.437,600, beginning liabilities were Rs.262,560, common stock issued during the year totaled
Rs.45,000, revenue for the year was Rs.414,250, expenses for the year were Rs.280,000, dividends declared were
Rs.22,700, and ending liabilities were Rs.350,000.
What was the ending equity for the year?

Answer: Assets = Liability + Equity

Opening Equity = 437,600 - 262,560 = 175,040
Net Income for the period = Revenue - Expense = 414,250 - 280,000 = 134,250
Closing Equity = Opening Equity + Stock Issued + N.I - Distributions
Closing Equity = 175,040 + 45,000 + 134,250 - 22700 = 331,590
(Option B) Rs.331,590

28. Beginning assets were Rs.437,600, beginning liabilities were Rs.262,560, common stock issued during the year totaled
Rs.45,000, revenue for the year was Rs.414,250, expenses for the year were Rs.280,000, dividends declared were
Rs.22,700, and ending liabilities were Rs.350,000.

Answer: Net Income for the year = Revenue - Expenses

Net Income for the year = 414,250 - 280,000 = 134,250
(Option C) Rs.134,250

29. Beginning assets were Rs.700,000, beginning equity was Rs.225,000, revenue for the year was Rs.523,000, common
stock issued during the year totaled Rs.320,000, expenses for the year were Rs.392,000, ending equity was Rs.751,000,
and ending assets were Rs.963,000.
What were the beginning liabilities for the year?

Answer: Assets = Liability + Equity

Beginning Liabilities = 700,000 - 225,000 = 475,000
(Option E) Rs.475,000

30. Ending liabilities were Rs.67,000, beginning equity was Rs.87,000, common stock issued during year totaled
Rs.31,000, expenses for the year were Rs.22,000, dividends declared totaled Rs.13,000, ending equity for the year was
Rs.181,000, and beginning assets for the year were Rs.222,000.
What are the ending assets for the year?

Answer: Assets = Liability + Equity

Closing Assets = 67,000 + 181,000 = 248,000
(Option D) Rs.248,000
Problem 1
As of December 31, Charles Company had Rs.12,000 in cash, held Rs.95,000 of inventory, and owned other items that
originally cost Rs.13,000. Charles Company had also borrowed Rs.40,000 from First City Bank. Prepare a balance sheet for
Charles Company as of December 31. Be sure to label each item and each column with appropriate terms.

CHARLES COMPANY
BALANCE SHEET AS OF DECEMBER 31, ----.
Liabilities and Owners' Equity Assets
Bank Loan 40,000 Cash 12,000
Owners' Equity 80,000 Inventory 95,000
Other Assets 13,000

1,20,000 1,20,000

Problem 2
Selected balance sheet items are shown for the Microtech Company. Compute the missing amounts for each of the four
years. What basic accounting equation did you apply in making your calculations?

Year 1 Year 2 Year 3 Year 4

Current assets 1,13,624 90,442 85,124 69,090
Noncurrent assets 4,10,976 1,98,014 1,62,011 1,51,021

Total assets 5,24,600 2,88,456 2,47,135 2,20,111

Current liabilities 56,142 40,220 15,583 17,539
Noncurrent liabilities 2,40,518 78,585 60,100 30,222
Paid-in capital 2,14,155 1,73,295 1,70,000 1,70,000
Retained earnings 13,785 -3,644 1,452 2,350
Total liabilities and
owners’ equity 5,24,600 2,88,456 2,47,135 2,20,111

Year 1 NCA 4,10,976 NCL 2,40,518

Year 2 CA 90,442 NCL 78,585
Year 2 TA 2,88,456
Year 3 TA 2,47,135 CL 15,583
Year 3 TL and OE 2,47,135
Year 4 CA 69,090 CL 17,539

Problem 3(a)
Assets Liability + Owners' Equity
Q No. Cash AR Supplies Equipment = AP CL Equity
1 25,000 25,000
2 -500 -500
3 8,000 8,000
4 -500 500
5 -750 -750
6 -3,000 -3,000
7 2,000 8,000 10,000
8 -5,000 -5,000
9 -100 -100
10 1,000 -1,000
Total 17,250 8,000 400 8,000 3,000 1,000 29,650
Problem 3(b)
Bon Voyage Travel
Balance Sheet as at June 30,……….
Liabilities and Owners' Equity Assets
Accounts payable 3,000 Cash 17,250
Short term liabilities 1,000 AR 8,000
Current Liabilties 4,000 Supplies 400
Owners’ equity 29,650 Current Assets 25,650
Equipment 8,000
Total liabilities
and owners’ equity 33,650 Total Assets 33,650

Problem 3(c)
BON VOYAGE TRAVEL
INCOME STATEMENT JUNE 1-30, ----.
Commissions
(Revenue) 10,000
Expenses
Rent -500
Advertising -750
Salaries -3,000
Supplies -100
Misc. Expenses -1,000 -5,350
Net Income 4,650

Problem 3(d)
BON VOYAGE TRAVEL
CASH RECEIPTS AND DISBURSEMENTS JUNE 1-30, ----.
Operating CF -2,750
Investing CF -5,000
Financing CF 25,000
Increase in cash 17,250

Problem 3(e)
Statement of Income is purely revenue less expenditure during the month. Cash Flow is when cash is actually changing
hands, either inflow or outflow.
Hence, the difference between the two is that the income statement also takes into account some non-cash accounting
items such as depreciation. The cash flow statement strips away all of this and shows exactly how much actual money the
company has generated.