Accounting for Decision Making

Cash Flow – Practice Question

Prepare Cash Flow Statement for the year ended June 30, 2009 showing separately cash flow
from operating activities, cash flows from investing activities and cash flows from financing
activities from the following data using indirect method

Financial charges paid during the year 81,610

Taxes paid during the year 26,879
Gratuity paid during the year 4,383
Long-term loans and advances - net increase in assets 5,100
Long-term deposits – net decrease in assets 149
Capital expenditure during the year 2,592,761
Profit received on investment and bank deposit accounts 72
during the year
Proceeds from sale of operating fixed assets 1,433
Proceeds from long-term financing from banking companies 5,500,000
Repayment of long-term financing from banking companies 3,559,524
Proceeds from long-term sponsor's loan 450,000
Proceeds from long-term sponsor's subordinated loan 75,000
Repayment of Director loan 150,000
Cash and cash equivalents at the beginning of the year (277,118)
Short term borrowing as at June 30,2008 298,924
Profit before taxation 37,442
Depreciation charged to Profit and Loss account during the 277,827
year
Cash and Bank Balances as at June 30, 2009 16,474
Impairment loss recorded in Profit and Loss account 873
Amortization of intangible assets during the year 39
Profit on sale of fixed assets 508
Fixed assets retired (net book value) 29
Provision for gratuity recorded in Profit and Loss account 9,232
Provision for slow moving / obsolete stores and spares 3,500
Increase in current assets 1,479,376
Profit on short term investment and bank deposit accounts 27
recoded in P&L
Financial charges recorded in Profit and Loss account 99,693
Increase in current liabilities 304,450
Short term borrowing as at June 30,2009 1,434,021
Cash and Bank Balances as at June 30, 2008 21,806
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