STATEMENT OF CHANGES IN WORKING CAPITAL
Net Increase in Working Capital: Rs. 7,28,000
FUNDS FLOW STATEMENT
Sources |
Amount (Rs.) |
Applications |
Amount (Rs. ) |
Issue of Preference Shares |
6,00,000 |
Purchase of Plant and Machinery |
4,00,000 |
Issue of Equity Shares |
2,00,000 |
Provision for Taxation (assumed to be paid) |
1,20,000 |
Issue of Debentures |
40,000 |
Proposed Dividend (assumed to be paid) |
2,00,000 |
Sale of Land & Buildings |
2,00,000 |
Net Increase in Working Capital |
7,28,000 |
Funds From Operations |
4,08,000 |
|
|
|
14,48,000 |
|
14,48,000 |
Working Notes:
1. Increase in 11% Cumulative Preference Shares and equity shares indicates issue of new shares.
2. Proposed Dividend and Provision for Taxation have been treated as non-current.
3. New debentures have been issued during the year.
4. Decrease in balance of Land and Buildings shows sale.
5. Similarly, plant and machinery has been purchased.
6. Calculation of Funds From Operations
Adjusted Profit and Loss Account
Particulars |
Rs. |
Particulars |
Rs. |
To Provision for Taxation |
1,68,000 |
By Balance b/d |
40,000 |
To Proposed dividend |
2,32,000 |
By Funds from operations (Balance figures) |
4,08,000 |
To Balance c/d |
48,000 |
|
|
|
4,48,000 |
|
4,48,000 |