From the following balance sheets of ABC Ltd., Find out cash from operating activities only:
ParticularsNote No.3103201731032016I. Equity and Liabilities: (1) Shareholder's Funds: (a) Share Capital35,00030,000 (b) Reserve and Surplus122,0003,500 (2) Non - Current Liabilities Long term Borrowings225,00021,000 (3) Current Liabilities Trade Payables12,500––––––8,500––––Total94,500––––––63,000––––––II. Assets: (1) Non- Current Assets: (a)Fixed Assets (i)Tangible Assets341,00032,000 (ii)Intangible Assets48,00010,000 (b) Non Current Investments58,0003,000 (2) Current Assets: (a) Inventory24,5006,000 (b) Cash and Cash Equivalents13,000––––––12,000––––––Total94,500––––––63,000––––––
(1)Reserve and Surplus:20172016General Reserve15,0009,500Profit and Loss Balance7,000––––(6,000)––––––22,000––––––3,500––––Bracket Denotes negative balance.(2)Long- term Borrowings:10% Debentures25,000––––––21,000––––––(3)Tangible Assets:Machinery54,00041,000() Provision for Depreciation13,000––––––9,000––––41,000––––––32,000––––––(4)Intangible Assets:Goodwill8,000––––10,000––––––(5)Rate of interest on Investments is 10% p.a.

Additional Information:
1. Debentures were issued on 31.3.2017
2. Investments were made on 31.3.2017

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Calculation Of Cash From Operating Activities
for the year ended 31st March, 2017

Rs.Rs.Net Profit before Tax (Note 1)18,500Adjustments for non-cash items:(+) Depreciation (13,0009,000)4,000(+) Goodwill written off2,000––––6,000––––24,500Adjustments for non- operating items:(+) Payments of interest on Long - term Borrowings (Debentures) (10% on Rs. 21,000)2,100() Interest on Non- current Investments(300)––––1,800––––Operating profit before working capital changes26,300Changes in Working Capital:(+) Increase in Trade Payables4,000() Increase in Inventory(18,500)––––––––(14,500)––––––––Net Cash flow from Operating Activities11,800

Note 1:
Calculation of Net Profit before Tax:––––––––––––––––––––––––––––––––––––––Net Profit During current year (7,000 + 6,000)13,000(+) Transfer to General Reserve5,500––––18,500––––––
Negative balance for Profit & Loss amounting to Rs. 6,000 appearing in the balance sheet on 31-03-2016 represents an amount of loss. In the current year, after covering this loss of Rs. 6,000 the Profit & Loss shows a profit of Rs. 7,000. It means that net profit during the current year must have been Rs. 7,000 + 6,000 = 13,000

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Following are the Balance Sheets of X Ltd. for two years. Prepare a Cash Flow statement:
ParticularsNote3103201831032017No.(I) Equity and Liabilities: (1) Shareholder's Fund: (a) Share Capital3,00,0002,00,000 (b) Reserve and surplus80,00030,000 (2) Non- Current Liabilities: Long term Borrowings175,000 (3) Current Liabilities: (a) Short term Borrowings225,00037,000 (b) Trade Payables1,50,00096,000 (c) Short term (Provision for Tax)15,000––––––12,000–––––– Total 5,70,000––––––––4,50,000––––––––II. Assets: (1) Non - Current Assets: Fixed Assets33,40,0003,00,000 (2) Current Assets (a) Current Investments (Short-term Investments)30,00020,000 (b) Inventory90,00060,000 (c) Trade Receivables97,00065,000 (d) Cash and Cash Equivalents13,000––––––5,000–––– Total5,70,000––––––––4,50,000––––––––
(1) Long - term Borrowings:310320183103201715% Loan- 75,000(2)Short-term Borrowings:Bank Overdraft25,000––––––37,000––––––(3)Fixed Assets:Plant and Machinery4,00,0003,50,000()Accumulated Depreciation60,000––––––50,000––––––3,40,000––––––––3,00,000––––––––
Additional Information:

(1) 3103201831032017Rs.Rs.Contingent Liability:Proposed Dividend30,00020,000
(2) Loan was repaid on 1st April, 2017


Gujarat Spinning Mills Ltd. faced the acute shortage of trained manopower. Other companies in the same trade were also facing the same problem. After consultation with one another, they set up a institute for technical training where training was imparted to unemployed youth to make them ready for employment. Following are the balance sheets of the company;

ParticularsNote31-03-201831-03-2017No.Rs.Rs.I. Equity and Liabilities: (1) Shareholder's Fund: (a) Share Capital5,00,0004,00,000 (b) Reserve and Surplus13,05,0002,10,000 (2) Non- Current Liabilities: Long term Borrowings23,10,0003,00,000 (3) Current Liabilities: Trade Payables95,000––––––80,000–––––– Total12,10,000–––––––––9,90,000––––––––II. Assets (1) Non- Current Assets: (a) Fixed Assets7,00,0005,00,000 (b) Non- Current Investments56,00070,000 (2) Current Assets: (a) Inventory2,80,0002,10,000 (b) Trade Receivables31,14,0001,40,000 (c) Cash and Cash Equivalents60,000––––––70,000–––––– Total12,10,000–––––––––9,90,000––––––––

3103201831032017Rs. Rs. (1)Reserve and Surplus: General Reserve1,15,0001,00,000 Profit and Loss Balance1,90,000––––––––1,10,000––––––––3,05,000––––––––2,10,000––––––––(2)Long term Borrowings: 12%Debentures1,50,0002,00,000 14%Mortgage Loan1,60,000––––––––1,00,000––––––––3,10,000––––––––3,00,000––––––––(3) Trade Receivables: Sundry Debtors94,0001,25,000 Bills Receivables20,000––––––15,000––––––1,14,000––––––––1,40,000––––––––
Total interest Paid on Long - term Borrowings during the year amounted to Rs. 37,800.
You are required to prepare a cash flow statement.

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