Quote:
Originally Posted by Saleemulhaq
Paper I 2014
Question number 4
Question number 7
I shall be thankful to you.
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Q#4 (CASH FLOW STATEMENT)
Cash flow from operating activities
PBIT = 3400
ADD
Depreciation = 10,000
Machinery = 6,000
Goodwill = 2000
Interest paid = (720)
Cash flow before working capital changes = 20680
Increase in Debtors = (8,000)
Increase in stock = (400)
Decrease in Liability = (3600)
interest = 720
Cash flow from operation activities = 9400
Cash flow from investing activities
purchase of assets = o/b 20,000 - Dep 10,000 c/f 16,000 = Addition=(6,000)
purchase of machine = (12,000)
cash flow from investing activities = (18,000)
cash flow from financing activities
issue of capital = 10,000
General reserve = 4,000
Debentures = (2,000)
Cash flow from financing activities = 12,000
Cash in hand = 9,400+12,000-18,000= [3400] thus balance is this