Comparative balance sheets at the end of 2004 and 2005 of OASIS LIMITED appear below: OASIS LIMITED Comparative Balance Sheets Assets 31, Dec 2004 31 Dec 2005 Cash and Bank Balance 50,000 45,000 Marketable Securities 40,000 25,000 Accounts Receivable 320,000 330,000 Merchandise Inventory 240,000 235,000 Plant & Equipment (net) 600,000 640,000 Total 1250,000 1275,000 Liabilities & Shareholder's Equity Accounts Payable 150,000 160,000 Accrued Expenses 60,000 45,000 Mortgage Loan (long term)— 70,000 Debenture Payable (due 2010) 500,000 350,000 Ordinary Share Capital 160,000 160,000 Retained Earning 380,000__ 490,000 Total 1250,000 1275,000 Additional information: Net income for the year amounted to Rs. 250,000 Cash dividends of Rs 140,000 were declared and paid. Depreciation of plant and equipment for the year was Rs. 60,000 Marketable securities costing Rs. 15,000 were sold Rs. 35,000 cash. INSTRUCTIONS Prepare a cash flow statement using indirect method for the year ended Dec 31, 2005 showing following clearly: (a) Cash flows from operating activities. (b) Cash flow from investing activities. (c) Cash flow from financing activities.
Comparative
OASIS LIMITED
Comparative Balance Sheets
Assets 31, Dec 2004 31 Dec 2005
Cash and Bank Balance 50,000 45,000
Marketable Securities 40,000 25,000
Merchandise Inventory 240,000 235,000
Plant & Equipment (net) 600,000 640,000
Total 1250,000 1275,000
Liabilities & Shareholder's Equity
Accounts Payable 150,000 160,000
Accrued Expenses 60,000 45,000
Mortgage Loan (long term)— 70,000
Debenture Payable (due 2010) 500,000 350,000
Ordinary Share Capital 160,000 160,000
Total 1250,000 1275,000
Additional information:
- Net income for the year amounted to Rs. 250,000
- Cash dividends of Rs 140,000 were declared and paid.
Depreciation of plant and equipment for the year was Rs. 60,000
- Marketable securities costing Rs. 15,000 were sold Rs. 35,000 cash.
INSTRUCTIONS
Prepare a cash flow statement using indirect method for the year ended Dec 31, 2005 showing following clearly:
(a)
(b) Cash flow from investing activities.
(c) Cash flow from financing activities.
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