Question #3: 6205 Capital & liabilities Share capital Bank loan Current liabilities Creditors for goods Statement...

 

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Question #3: 6205 Capital & liabilities Share capital Bank loan Current liabilities Creditors for goods Statement of Financial Position as oh 31 March 2005 Rs. 65.000 30,000 10,000 Assets Non-current assets Building Furniture Van Current assets Stock in trade Debtors Cash & banks Rs. Purchase will increase by 20% in volume. Prices of purchases will increase by 9% Expenses will total Rs. 36,000 for 2005-2006 including depreciation 5% on building 40.000 10.000 15.000 15,000 20,000 5.000 105,000 105.000 20.405 Creditors represent one month's purchases and debtors represent one and a half months' sales for the year ended 31st March, 2006. (1) (2) 10% furniture 20% on van (4) The van will be sold in March 2006 for Rs. 20,000 and replaced by a new one costing Rs. 25,000. (5) (6) (7) (8) (9) males Dividend paid Rs. 18,000. The mark up rate was 33.33 in 2005. There will be no change in the rate of mark-up (based on cost). The bank loan is repayable in three installments. zulleggsb Stock in trade is equal to one and half month of purchase. Required: Prepare statement of cash flows using direct and indirect method. net Question #3: 6205 Capital & liabilities Share capital Bank loan Current liabilities Creditors for goods Statement of Financial Position as oh 31 March 2005 Rs. 65.000 30,000 10,000 Assets Non-current assets Building Furniture Van Current assets Stock in trade Debtors Cash & banks Rs. Purchase will increase by 20% in volume. Prices of purchases will increase by 9% Expenses will total Rs. 36,000 for 2005-2006 including depreciation 5% on building 40.000 10.000 15.000 15,000 20,000 5.000 105,000 105.000 20.405 Creditors represent one month's purchases and debtors represent one and a half months' sales for the year ended 31st March, 2006. (1) (2) 10% furniture 20% on van (4) The van will be sold in March 2006 for Rs. 20,000 and replaced by a new one costing Rs. 25,000. (5) (6) (7) (8) (9) males Dividend paid Rs. 18,000. The mark up rate was 33.33 in 2005. There will be no change in the rate of mark-up (based on cost). The bank loan is repayable in three installments. zulleggsb Stock in trade is equal to one and half month of purchase. Required: Prepare statement of cash flows using direct and indirect method. net

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Statement of Cash Flows Using Direct Method For the year ended 31 March 2006 Cash Flows from Operati... View the full answer