Cash Flow Statement for the year ended 31st March, 2007Particulars Rs.A. Cash Flow from Operating Activities 20,000 Net Profit for the
year before tax Add : Increase in Creditors 7,000 Decrease in Debtors 5,000
12,000 Net Cash provided by Operating Activities 32,000B. Cash Flow from
Investing Activities 20,000 Proceeds from Sale of Fixed Assets 20,000 Net Cash
from Investing Activities C. Cash Flow from Financing Activities Redemption of
Debentures (50,000) Net Cash used in Financing Activities (50,000)D
Net Increase in Cash (A +B+C) 2,000 Add : Cash at thebeginning of the period 10,000Cash at the end of the period 12,000 Illustration
12. From the following particulars , prepare the Cash Flow Statement for the
year ended 31st March, 2007 by the Direct Method :(i) Cash sales Rs.
65,86,000.(ii) Cash collected from debtors during the year amounted to Rs.
33,23,400.(iii) Cash paid to suppliers was Rs. 79,36,810.(iv) Rs.9, 87, 500 was
paid to and for employees.(v) Furniture of the book value of Rs. 18,500 was
sold for Rs. 11,000 and a new furniture costing Rs. 83,160 was purchased.(vi)
Debentures of the face value of Rs. 3,00,000 were redeemed at a premium of 2 per
cent. interest on debentures. Interest on debentures, Rs. 84,000 was also
paid.(i) Dividend, Rs. 4,50,000 for the year ended 31st March, 2007 was
distributed in May, 2007.(ii) Cash in hand and at bank as on March 31, 2006 and
March 31,2007 was Rs. 51,070 and Rs. 5,74,000 respectively.