Prepare cash flow statement using direct method

Illustration 13. From the information contained in Income Statement and Balance Sheet of 'A' Ltd., prepare Cash Flow Statement: Income Statement for the year ended March 31, 2010 a57 Rs. (A) A 2,52,00,000 Net Sales Less: Cash Cost of Sales Depreciation Salaries and Wages Operating Expenses Provision for Taxation (B) Net Operating Profit (A-B) Non-recurring Income - Profits on sale of equipment 1,98,00,000 6,00,000 24,00,000 8,00,000 8,80,000 2.44.80,000 7,20,000 1,20,000 8,40,000 15,18,000 23,58,000 7,20,000 16,38,000 Retained earnings and profits brought forward Dividends declared and paid during the year Profit and Loss Account balance as on March 31, 2010 Balance Sheet Assets March 31, 2009 March 31, 2010 (Rs.) . (Rs.) ) 4,80,000 36,00,000 9,60,000 57,60,000 Fixed Assets: Land Buildings and Equipment Current Assets: Cash Debtors Stock Advances 6,00,000 16,80,000 26,40,000 78,000 7,20,000 18,60,000 9,60,000 90,000 1,03,50,000 90,78,000 Balance Sheet Liabilities and Equity Share Capital Surplus in Profit and Loss Account Sundry Creditors Outstanding Expenses Income tax payable Accumulated Depreciation on Buildings and Equipment March 31, 2009 March 31, 2010 (Rs.) (Rs.) 36,00,000 44,40,000 15,18,000 16,38,000 24,00,000 23,40,000 2,40,000 4,80,000 1,20,000 1,32,000 12,00.000 13,20,000 1,03,50,000 90,78,000 The original cost of equipment sold during the year 2009-10 was Rs. 7,20,000