Cash flow statement with direct method

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Particularv Amount Amount
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A- catagory

Cash flow from operating activity
Inflow of cash
Cash sale & amount from debtors calculation
= sale + opening bal. of debtors -
closing balance of debtors
= 1602000+36000-122400= (+) 1515600
Any other operating income (+) nil
Less
Cash outflow
1. Cash purchase and amount paid to creditors
Calculation
= Cost of goods sold +opening creditors
-closing creditors =
= 837000+72000-41400= (-) 867600
2. Cash operating Expenses
Operating expenses as per profit and
Loss account -depreciation - preliminary exp.
- Outstanding expense closing
= 397800 - 59400 -3600 -18000 = (-) 316800
Out flow of stock
+ opening stock (-) 86400
-closing stock =10800-97200
____________________________________________
244800
Less income tax paid (-) 117000
__________________________________________
127800 127800
________________________________________
B- Category
Cash flow from investing activity
Inflow of cash
1. sale of equipment (+) 298800
2.sale of land (+)45000
Less Cash outflow
1 cash paid for purchase of equipment (-) 298800
______________________________________________
192600 192600
______________________________________________
C- catagory
Cash flow of financing activity
Cash inflow
1. Issue of new shares (+) 162000
Less Cash outflow
1. Cash paid for redemption of deb. (-) 18000
2. Dividend paid (-) 27000
3. Interest Paid (-) 21600
_______________________________________________
95400 95400
_______________________________________________
Add opening cash balance + 66600
____________________________________________________________
Closing balance of cash 97200
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Cash flow statement with Indirect method
__________________________________________________________
Particularv Amount Amount
--------------------------------------------------------------------------------------------------
A-category
Cash flow of operating activity
1st Point
Net Profit before taxation and extraordinary
Items 342000
2nd Point
Add for non cash and non operating expenses
And losses
1. Depreciation 59400
2. Preliminary expenses written off 3600
3. Discount on issue of shares and deb. w/o nil
4. Goodwill written off nil
5. Patent and trade marks written off nil
6. Interest on borrowing and deb. 3600
7. Loss on sale of fixed assets 21600
______________
430200
3rd Point
Less non –cash and non operating incomes (-) nil
1. Dividend income(For non financial co.)
2. Rental income
3. Profit on sale of fixed asset
_________________
4th point ( Ist point +2nd Point -3rd Point ) 430200

Adjustment of working capital changes
5th point
Add Decrease in current assets and increase in
Current liabilities (+) nil
1. Decrease in stock
2. Decrease in debtors
3. Decrease in accrued income
4. Decrease in prepaid expenses
5. Increase in creditors
6. Increase in bill payables
7. increase in outstanding expenses (+) 18000
8. Increase in advance incomes
9. Increase in provision for doubtfull debts
____________________
448200
6th Point
Less increase in current assets and decrease in (-)
Current liabilities
1. Increase in stock 86400
2. Increase in debtors 86400
3. increase in accrued incomes nil
4. increase in prepaid expenses nil
5. decrease in creditors 30600
6. Decrease in bill payables nil
7. decrease in outstanding expenses nil
8. decrease in advance incomes nil
9. Decrease in provision for d/d nil

________________________________________________________
244800
Less income tax paid (-) 117000
________________________________________________________
127800 127800
_____________________________________________________
B- Category
Cash flow from investing activity
Inflow of cash
1. sale of equipment (+) 298800
2.sale of land (+)45000
Less Cash outflow
1 cash paid for purchase of equipment (-) 298800
______________________________________________
192600 192600
______________________________________________
C- catagory
Cash flow of financing activity
Cash inflow
1. Issue of new shares (+) 162000
Less Cash outflow
1. Cash paid for redemption of deb. (-) 18000
2. Dividend paid (-) 27000
3. Interest Paid (-) 21600
_____________________________________________________________________
95400 95400
________________________________________________
Add opening cash balance + 66600
____________________________________________________________________
Closing balance of cash 97200