Karnavati Pharma Ltd.

(KPL)
Profit and Loss Account for the year ended March 31, 2015

Particulars Amount in Rs.

Sales 700,000
Interest income 40,000
Sub- Total 740,000
Cost of goods sold (including depreciation on equipment, Rs. 60,000) 390,000
General & Admin expenses 150,000
Selling & Distribution expenses 82,000
Loss on sale of equipment* 30,000
Interest paid 28,000
Sub-Total 680,000
Profit before tax 60,000
Less: Income tax @ 30% 18,000
Profit after tax 42,000

Balance Sheet as at March 31,

Particulars 2015 2014
ASSETS
Cash 60,000 95,000
Debtors 80,000 60,000
Inventories 100,000 80,000
Land 150,000 150,000
Property, plant & equipments (net of depreciation) 640,000 600,000
TOTAL ASSETS 1,030,000 985,000
LIABILITIES
Creditors 60,000 90,000
Bills payable 22,000 12,000
Income tax Payable 18,000 20,000
Long term loans 175,000 238,000
Share capital 600,000 500,000
Retained Earnings 155,000 125,000
TOTAL LIABILITIES 1,030,000 985,000
* The original value of equipment sold was Rs. 100,000 and accumulated depreciation at
the time of sale was Rs. 20,000. This asset was sold on 1st April 2014.

Required: Prepare Cash flow statement using indirect method for the year ended on 31st
March 2015.