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Cash Flow Statement

The document provides financial information for a company over two years. It includes balance sheet accounts for 2012 and 2013 that can be used to prepare a cash flow statement for 2013. It also provides extensive accounting data for Majid Inc. for the year ended April 30, 2017 that can be used to prepare a direct method cash flow statement.

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Masood Ahmad Aadam
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45 views1 page

Cash Flow Statement

The document provides financial information for a company over two years. It includes balance sheet accounts for 2012 and 2013 that can be used to prepare a cash flow statement for 2013. It also provides extensive accounting data for Majid Inc. for the year ended April 30, 2017 that can be used to prepare a direct method cash flow statement.

Uploaded by

Masood Ahmad Aadam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Q.1 (CSS – 2014, Paper # 1, Section – A, Q.

# 4)

Prepare cash flow statement from the following balance sheets of X Ltd for the year ended December 31, 2013.
2012 2013 2012 2013
Liabilities and capital Rs. Rs. Assets Rs. Rs.
Share capital 40000 50000 Building 20000 16000
General reserve 7000 11000 Machinery 8000 14000
Profit and loss 3000 3400 Goodwill 6000 4000
9% debentures 10000 8000 Debtors 24000 32000
Sundry curators 4600 1000 Stock 3600 4000
Cash 3000 3400
64600 73400 64600 73400
Adjustments: Depreciation charged on building Rs. 10000 and on machinery Rs. 6000

Q.2 (CSS – 2020, Paper # 1, Part – II, Section – I, Q. # 4 (b)

Majid, Inc., accountants have developed the following data from the company’s accounting
Records for the year ended April 30, 2017:
a) Purchase of plant assets, Rs.59,400.
b) Cash receipt from issuance of notes payable, Rs.46,100.
c) Payments of notes payable, Rs.44,000.
d) Cash receipt from sale of plant assets, Rs.24,500.
e) Cash receipt of dividends, Rs.4,800.
f) Payments to suppliers, Rs.374,300.
g) Interest expense and payments, Rs.12,000.
h) Payments of salaries, Rs.88,000.
i) Income tax expense and payments, Rs.37,000.
j) Depreciation expense, Rs.59,900.
k) Collections from customers, Rs.605,500.
l) Payment of cash dividends, Rs.49,400.
m) Cash receipt from issuance of common stock, Rs.64,900.
n) Cash balance: April 30, 2016, Rs.40,000; April 30, 2017, Rs.121,700.
Required: Prepare Majid’s statement of cash flows for the year ended April 30, 2017. Use the direct
method for cash flows from operating activities.

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