Cash Flow Statement for the Year Ended March 31, 1999 Rs Profit Cashflow CFO CFI CFF

Profit Cashflow CFO CFI CFF CFO - Profit

Cash Flow From Operating Activities Explanations ------->>>
Net Profit/(Loss) (75,000)
Adjustments
Depreciation 60,000 Reconciling CFO with (60,000) - - - - 60,000 CFO - Profit increases with Non-cash expenses or losses
Goodwill Amortisation 25,000 Profit: CFO = Profit + (25,000) - - - - 25,000 "
Loss on sale of Equipment 20,000 (CFO-Profit) (20,000) - - - - 20,000 "
Interest expense 8,500 113,500 (8,500) (7,500) - - (7,500) 8,500 Only interest paid (not interest expense) affects CFF.
Operating profit before working capital changes 38,500 But neither affects CFO.
Working capital Changes
Decrease/(Increase) in debtors (25,000) (25,000) CFO - Profit increases with Decrease in current assets
Decrease/(Increase) in stock (20,000) (20,000) "
Decrease/(Increase) in prepaid rent 2,000 2,000 "
Increase/(Decrease) in creditors (30,000) (30,000) CFO - Profit increases with Increase in current liabilities
Increase/(Decrease) in bills payable 5,000 5,000 "
Increase/(Decrease) in accrued wages 2,000 (66,000) 2,000 "
Net cash generated from operating activities (27,500)

Cash Flow from Investing Activities

Net sale/ (purchase) of equipment 80,000 See Calculations 80,000
Net cash generated from investing activities 80,000

Cash Flow from Financing Activities

Interest paid (7,500) See Calculations (7,500)
Net cash generated from financing activities (7,500)

Net Increase/(Decrease) in Cash & Equivalents 45,000

Cash and cash equivalents at the beginning of the year 95,000
Cash and cash equivalents at the end of the year 140,000
Net Proceeds on Sale of Equipment
Depreciated cost as on 31.3.1998 600,000
Less: Depreciation during 1998=99 60,000
Depreciated cost of equipment as on 31.3.1999 had 540,000
there been no purchase or sale
Actual depreciated cost of equipment as on 31.3.1999 440,000
Depreciated Cost of equipment Sold/(Bought) 100,000
Add Profit/(Loss) on sale of equipment (20,000)
Net Sale/(Purchase) of Equipment 80,000

Interest Paid
Interest Expense 8,500
Less: Increase/(Decrease) in Interest Payable 1,000
Interest Paid 7,500