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
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 31t March, 2016 exceeded those on 31* 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 31s* 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.
Transcribed Image Text: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 31t March, 2016 exceeded those on 31* 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 31s* 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.
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