Cash flow statement example | Class 12

A statement which shows inflow and outflow of cash during a particular period of time is known as cash flow statement. A cash flow statement contains all payments and receipts in cash. It is a summary of sources and applications of cash during a specified period. The cash flow statement reflects a firm’s liquidity.

The cash flow statement is divided into three types of activities: operating activities, investing activities, and financing activities.

  • The transactions which are related to revenue generation, comes under the category of operating activities.
  • The items which are related to purchase and sale of fixed assets, comes under the category of investing activities.
  • The transactions which are related to change in capital and borrowings, comes under the category of financing activities.

Examples of Cash Flow Statement are as given below:




Amount received from issue of equity shares

Cash Flow Statement Example 1:

Following particulars are provided by Akash Ltd . The total money received from issue of equity shares will be:

Additional information:
a Preference dividend on preference shares and an interim dividend on equity shares @ 3 % were paid on 30th September 2014.
b Preference shares were redeemed on 31st March 2015 at a premium of 18 %.Such premium has been provided out of profits. New shares and debentures issued on 1st October 2014.

Explanation : –

Issue of share capital = Closing balance of share capital (-) Opening balance of share capital
Equity share capital = 6750000 (-) 4500000
= 2250000
Premium on issue of shares = Closing balance of security premium (-) opening balance of security premium
= 937500 (-) 750000
= 187500
Interim dividend paid = 4500000 x 3 %
= 135000
Total amount received from issue of equity shares = Total amount of shares issued + Security premium received on issue (-) Interim dividend paid
= 2250000 + 187500 (-) 135000
= 2302500




Calculation of amount in case of shares redeem at premium

 Cash Flow Statement Example 2 :

Following particulars are provided by Akash Ltd . The total amount paid to preference shares holders will be:

Additional information:
a Preference dividend on preference shares and an interim dividend on equity shares @ 15 % were paid on 30th September 2014 .
b Preference shares were redeemed on 31st March 2015 at a premium of 12 %.Such premium has been provided out of profits. New shares and debentures issued on 1st October 2014

Explanation : –

Redemption of preference shares = Opening balance of preference shares (-) Closing balance of preference shares
= 400000 (-) 100000
= 300000

Premium on redemption of preference shares = 300000 X 12/100 = 36000

Preference dividend = 400000 X 7%
= 28000
Total amount paid = 300000 + 36000 + 28000
= 364000

Cash flow from financing activities

 Cash Flow Statement Example 3:

Following particulars are provided by Amit Ltd . Net cash flow from financing activities will be:

Additional information:
a Preference dividend on preference shares and an interim dividend on equity shares @ 12 % were paid on 30th September 2014 .
b Preference shares were redeemed on 31st March 2015 at a premium of 15 %.Such premium has been provided out of profits. New shares and debentures issued on 1st October 2014




Explanation : –

Issue of share capital = Closing balance of share capital (-) Opening balance of share capital
Equity share capital = 3600000 (-) 2400000
= 1200000
Premium on issue of shares = Closing balance of security premium (-) opening balance of security premium
= 500000 (-) 400000
= 100000
Issue of debentures = Closing balance of debentures (-) Opening balance of debentures
= 960000 (-) 800000
= 160000
Redemption of preference shares = Opening balance of preference shares (-) Closing balance of preference shares
= 1600000 (-) 400000
= 1200000

Premium on redemption of preference shares = 1200000 X 15/100 = 180000

Interest paid on debentures = 800000 X 16% = 128000

Add: Interest on new debentures issued = 160000 X 16% X 6/12 = 12800

Total interest on debentures = 128000 + 12800
= 140800

Dividend paid on equity shares = 2400000 X 12/100 = 288000

Dividend paid on preference shares = 1600000 X 15/100

= 240000

 Cash Flow Statement Example 4:

Akash Ltd provides the following information. Cash flow from financing activities will be:

Additional information:
1 Interest paid on debentures Rs 7000 .
2 Dividend paid Rs 12000 .

Explanation : –

Issue of equity share capital Closing balance of debentures (-) opening balance of debentures
225000 (-) 150000
75000
Cash proceeds from 15 % Debentures = Closing balance of debentures (-) opening balance of debentures
= 60000 (-) 0
= 60000
Redemption of 12 % Debentures = opening balance of debentures (-) Closing balance of debentures
= 50000 (-) 0
= 50000




Cash flow from Investing activities

 Cash Flow Statement Example 5:

Following is the information available from the books of Akash Ltd.

Cash flow from investing activities will be:

Explanation : –

 Cash Flow Statement Example 6:

Cash flow from investing activities from the following information will be:

Explanation : –




 Cash Flow Statement Example 7:

Following is the information available from ABC Ltd

Additional information:
1 Half of the investment held in the beginning of the year was sold at a profit of 2 %.
2 Depreciation on fixed Assets was Rs 100000 for the year
3 Interest received on investment was Rs 90000
4 Dividend received on investment Rs 70000
Cash flow from Investing activities will be:

Explanation : –

Cash flow from operating activities

Cash Flow Statement Example 8: 

Question 8 : –

Cash flow from operating activities from the following information will be:

Explanation : –




 Cash Flow Statement Example 9:

Cash flow from operating activities from the following information will be:

Explanation : –

 Cash Flow Statement Example 10:

AB Ltd had the following balances

During the year, the company had sold 20 % of its investment at a profit of Rs 21000 .Calculate cash flow from operating activity and cash flow from investing activity if company earned a profit of Rs 50000 during the year will be:

 

Explanation : –




Depreciation on asset when accumulated depreciation given

 Cash Flow Statement Example 11:

Following is the information relating to Akash Ltd

During the year a Machine sold for Rs 45000 On which Accumulated depreciation was Rs 67500 .
Depreciation charged on machinery during the year is:

 

Explanation : –

 Cash Flow Statement Example 12:

From the following information what will be the amount of asset purchased during the year

Additional information
1 During the year a machine costing Rs 30000 accumulated deprecation Rs 22000 was sold for Rs 9500

 

Explanation : –

Dividend paid during the year

 Cash Flow Statement Example 13:

Following particulars are provided by Amrita Ltd dividend paid on preference shares will be:

Additional information:
a Preference dividend on preference shares and an interim dividend on equity shares @ 20 % were paid on 30th September 2014 .
b Preference shares were redeemed on 31st March 2015 at a premium of 5 %.Such premium has been provided out of profits. New shares and debentures issued on 1st October 2014

 

Explanation : –

Rate of dividend on preference shares = 15%
Dividend paid on preference shares = 1600000 X 15%
= 240000




Interest paid to debenture holders

 Cash Flow Statement Example 14:

Following particulars are provided by Best Ltd .interest paid on debenture during the year will be:

Additional information:
a  Preference dividend on preference shares and an interim dividend on equity shares @ 7 % were paid on 30th September 2014 .
b Preference shares were redeemed on 31st March 2015 at a premium of 3 %.Such premium has been provided out of profits. New shares and debentures issued on 1st October 2014

 

Explanation : –

Issue of debentures = Closing balance of debentures (-) Opening balance of debentures
= 120000 (-) 100000
= 20000
New debenture issued = 1st October 2014
Month up to 31st March = 6
Total month in a year = 12
Interest paid on debentures = 100000 X 16% = 16000

Add: Interest on new debentures issued = 20000 X 16% X 6/12 = 1600

Total interest on debentures = 16000 + 1600
= 17600

 

Net profit before tax and extraordinary items

 Cash Flow Statement Example 15:

Following is the extract from the Balance sheets of Better LTD

Net profit before Tax and Extraordinary items will be:

 

Explanation : –

 

 Cash Flow Statement Example 16:

Following is the extract from the Balance sheets of Akash Ltd

Additional Information: final dividend on preference share of Rs 60000 and Interim dividend of Rs 32000 on Equity share was paid on 31st march 2017 .
Net profit before Tax and Extraordinary items will be:




Explanation : –

 Cash Flow Statement Example 17:

Following is the information available from the records of DP LTD

Net profit before Tax and Extraordinary Items will be:

 

Explanation : –

Operating profit before working capital changes

 Cash Flow Statement Example 18:

From the following information, Calculate operating profit before working capital changes

Explanation : –

 

Proposed dividend made during the year

 Cash Flow Statement Example 19:

Following is the information relating to Amit Ltd.

If Dividend paid during the year is 22500 Proposed dividend during the year is:

 

Explanation : –

 

 Cash Flow Statement Example 20:

Following is the information relating to Balaji Ltd

If proposed dividend during the year is 14400 dividend paid during the year is:

 

Explanation : –




Provision for tax made during the year

 Cash Flow Statement Example 21:

Following is the information relating to DK Ltd.

If tax paid during the year is 16000 provision for tax during the year is :

 

Explanation : –

Tax paid during the year

 Cash Flow Statement Example 22:

Following is the information relating to ABC Ltd

if provision for tax made during the year is 27000 tax paid during the year is :

 

Explanation : –

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