ENTITY

CASH FLOW STATEMENT FOR THE PERIOD

Profit before tax

Add: Non-cash expenses (I/S)
> Depreciation +
> Amortization +
Adjust: Items belonging to other heads (I/S)
> Profit on sale of asset/investments -
> Loss on sale of asset/investment +
> Interest income -
> Interest expenses +
> Dividend income -
CFO before working capital changes
Adj: Working capital changes (B/S)
Increase in inventory/A/R/CA -
Decrease in inventory/AR/OCA +
Increase in AP/OCL +
Decrease in AP/OCL -
CFO before income tax
Less: Income tax paid
Cash flow from / used in operating activities

Cash flow from investing

Cash flow from financing

Net cash flow during the period

Add: Opening CCE
Closing CCE
Chemalite B
CASH FLOW STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2005
Particulars Amount
Profit before tax 183925
Add: Non-cash expenses (I/S)
> Depreciation + 61625
> Amortization + 25000 86625
Adjust: Items belonging to other heads (I/S)
> Gain on sale of equipment - -24250
> Interest expenses + 58750
34500
CFO before working capital changes
Adj: Working capital changes (B/S)
Increase in A/R 69500-139530 -70030
Increase in Raw materials 55000-75450 -20450
Increase in FG 0 - (104680-5000) -99680
Increase in prepaid insurance 0-65000 -65000
-255160
CFO before income tax 49890
Less: Income tax paid 39150
Cash flow from operating activities 10740

Cash flow from investing activities

Sale of machines 215500
Purchase of machines -520000
Purchase of land and building -425000
Cash used in investing activities -729500

Cash flow from financing activities

Borrowing: Short-term debt 200000
Borrowing: Long-term debt 510000
Dividend paid -10000
Interest paid -58750
Share buyback -26000
Cash flow from financing activities 615250
Net cash flow during the period -103510
Add: Opening CCE 113000
Closing CCE 9490

Depreciation breakup
Depreciation in old machine 212500*1/10*1/2 10625
Depreciation of new machine 520000*1/10*1/2 26000
Depreciation of building 600000*1/10*1/2 30000
66625
P&L 61625
FG 5000

Income tax payable

Opening payable 10900
Income tax expenses 64930
Less: Income tax paid 39150
= Closing balance 9950+26730 36680

Retained earnings
Opening balance 18475
Profit during the year 118995
Less: 12000
Closing balance 125470

Dividend payable
Opening payable 10000
Dividend declared 12000
Less: dividend paid 10000
Closing payable 12000