Arasu Limited Funds Flow Statement 2011-12 Sources Applications Rs. Rs. Funds from operations 77,71 purchase of fixed assets 38,54 Sale of fixed assets 16,62 increase in working capital 55,84 Redemption of investment 94,38 94,38 It may be seen from the above statement that sources amount to rs.94,38,000 and applications amount to rs.38,54,000, thereby resulting in an increase in working capital amounting to rs.55,84,000. This figure tallies with the increase in working capital as shown by the schedule of changes in working capital Illustration 2: 15 The balance sheet of mathi limited for two years was as follows: Liabilities Assets 2010 2011 2010 2011 Share Capital 40,000 60.000 56,600 Land & 27,700 Buildings Plant & 17,800 Machinery Share Premium 4,000 6,000 25,650 3,000 9,750 General Reserve Profit & Loss A/C 5% Debentures Creditors Provision For Taxation 4,500 10,400 13,000 18,200 5,450 Furniture Stock Debtors Bank 1,200 11,050 18,250 2,400 750 13,000 19,550 2,000 16,750 4,900 78,400 1,17,550 78,400 1,17,550 Additional Information Depreciation written off during the year was: Plant and machinery rs,6,400 Furniture rs. 200 Prepare a schedule of changes in working capital and a statement of sources and application of funds