Problem 84: M Ltd. Gives you the following information for the year ended 31* March, 2016: (i) (ii) (ii) (iv) (v) (vi) Sales for the year totalled $ 96,00,000. The company sells goods for cash only. Cost of goods sold was 60% of sales. Closing inventory was higher than opening inventory by $ 43,000. Trade creditors on 31st March, 2016 exceeded those on 31s* March, 2015 by $ 23,000. Tax paid amounted to $ 7,00,000. Depreciation on Fixed Assets for the year was $ 3,15,000 whereas other expenses totalled $ 21,45,000; outstanding expenses on 31* March, 2015 and 31* March, 2016 totalled $ 82,000 and $ 91,000 respectively. New machinery and furniture costing $ 10,27,500 in all were purchased. (vii) (viii) A right issue was made of 50,000 equity shares of $ 10 each at a premium of $ 3 per share. (ix) (x) The entire money was received with applications. Dividends totalling $ 4,00,000 were distributed among shareholders. Cash in hand and at bank as at 31* March, 2015 totalling $ 2,13,800. You are required to prepare a Cash Flow Statement using Direct Method.

Problem 84: M Ltd. Gives you the following information for the year ended 31* March, 2016: (i) (ii) (ii) (iv) (v) (vi) Sales for the year totalled $ 96,00,000. The company sells goods for cash only. Cost of goods sold was 60% of sales. Closing inventory was higher than opening inventory by $ 43,000. Trade creditors on 31st March, 2016 exceeded those on 31s* March, 2015 by $ 23,000. Tax paid amounted to $ 7,00,000. Depreciation on Fixed Assets for the year was $ 3,15,000 whereas other expenses totalled $ 21,45,000; outstanding expenses on 31* March, 2015 and 31* March, 2016 totalled $ 82,000 and $ 91,000 respectively. New machinery and furniture costing $ 10,27,500 in all were purchased. (vii) (viii) A right issue was made of 50,000 equity shares of $ 10 each at a premium of $ 3 per share. (ix) (x) The entire money was received with applications. Dividends totalling $ 4,00,000 were distributed among shareholders. Cash in hand and at bank as at 31* March, 2015 totalling $ 2,13,800. You are required to prepare a Cash Flow Statement using Direct Method.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.4AP

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