Following are the balance sheets of Vijay & son:
Liabilities 1‐1‐05 31‐12‐05 Assets 1‐1‐05 31‐12‐05
Creditors 36000 41000 Cash 4000 3600
Loan from Partner - 20000 Debtor 35000 38400
Loan from Bank 30000 25000 Land 25000 22000
Capital 148000 149000 Stock 20000 30000
Building 50000 55000
Machinery 80000 86000
Total 214000 235000 214000 235000
During the year AED. 26,000 paid as dividend. The provision made for depreciation against machinery as on 1.1.05 was AED. 27,000 and on 31.12.05 AED. 36,000. Prepare a cash flow statement.
| Cash Flow from Operating Activities | ||
| Net Income | 27,000.00 | |
| Depreciation Expense (36,000 - 27,000) | 9,000.00 | |
| Increase in Creditors | 5,000.00 | |
| Increase in Debtors | - 3,400.00 | |
| Increase in Stock | - 10,000.00 | |
| Net Cash Flow from Operating Activities | 27,600.00 | |
| Cash flows from investing activities | ||
| Sale of Land | 3,000.00 | |
| purchase of Building | - 5,000.00 | |
| Purchase of Machinery | - 15,000.00 | |
| Net Cash flow from Investing activities | - 17,000.00 | |
| Cash Flow s from Financing Activities | ||
| Loan Proceeds | 20,000.00 | |
| Repayment of Loan Principal | - 5,000.00 | |
| Payment of Dividend | - 26,000.00 | |
| Net Cash Flow from Financing Activities | - 11,000.00 | |
| Net Increase /Decrease in Cash | - 400.00 | |
| Add: Opening Cash Balance | 4,000.00 | |
| Closing Cash Balance | 3,600.00 |
Following are the balance sheets of Vijay & son: Liabilities 1‐1‐05 31‐12‐05 Assets 1‐1‐05 31‐12‐05 Creditors...
Following are the balance sheets of Vijay & son: Liabilities 1‐1‐05 31‐12‐05 Assets 1‐1‐05 31‐12‐05 Creditors 36000 41000 Cash 4000 3600 Loan from Partner - 20000 Debtor 35000 38400 Loan from Bank 30000 25000 Land 25000 22000 Capital 148000 149000 Stock 20000 30000 Building 50000 55000 Machinery 80000 86000 Total 214000 235000 214000 235000 During the year AED. 26,000 paid as dividend. The provision made for depreciation against machinery as on 1.1.05 was AED. 27,000 and on 31.12.05 AED. 36,000....