Cash Flow Statment

[skystar]

The comparative financial statement data for XYZ Company is given below

Assets 2007 2006
Rs. Rs.
Cash 4,000 7,000
Accounts Receivable 36.000 29,000
Inventory 75,000 61,000
Plant & Equipment 210,000 180,000
Accumulated Depreciation (40,000) (30,000)

Total Assets 285,000 247,000

Liabilities & Stockholder’s equity

Accounts Payable 45,000 39,000
Common Stock 90,000 70,000
Retained Earning 150,000 138,000

Total Liabilities & Equity 285,000 247,000


For 2007, Net Income Statement of the company is

XYZ Company
Income Statement
For the year ended 31st December, 2007
Rs.
Sales 500,000
Less Cost of Good Solds 300,000

Gros Margin 200,000

Less Operating Expense 180,000

Net Income 20,000

Required
Using direct method (IAS 07), prepare a Statement of Cash Flows if dividend of Rs. 8,000 was declared and paid during 2007. There were no sales of plant and equipment during the year.

[Qureshi Muhammad Zeeshan]

XYZ Company
Cash flow statement
for the year Ended 2007
Direct Method
Amount in Rs.
---------------------------------------
Cash Flow from Operating Activities
=================================================
Cash Received from Debtors 493,000
Cash Paid to Creditors (308,000)
Cash Paid For Expenses (170,000)
----------------
Net cash flow from O.P Activities 15000

Cash Flow From Investing Activities
===================================================
Purchase of plant and Equipment (30,000)
----------
Net cash flow from Investing Activities(30,000)

Cash Flow from Financing Activities
===================================================
Common Stock 20,000
Dividend ( 8,000)
-----------
Net Cash Flow from Financing Activities 12,000

Total Net Cash Flow (3000)
Add opening cash Flow 7000
----------
Closing Cash Flow 4000