Please note that in the following question Rs = Rupees = Indian currency. Also figures are written in Indian style. Rs 1,00,000 (Indian figure) = 100,000 Rupees (Western system). Rs 15,30,000 (Indian figure) = 1,530,000 Rupees (Western system). I think you can see the pattern here...
SVKM’s Narsee Monjee Institute of Management Studies (NMIMS) School of Distance Learning SUBJECT : ACCOUNTING AND FINANCE FOR MANAGERS Marks: 20 All questions are compulsory:
Good Luck Limited has submitted the following condensed Balance Sheets as on 31st December, 2006 and 31st December, 2007 and the Statement of Income and Reconciliation of Retained Earnings for the year ended 31st December, 2007:
Additional Information: 1. The cash inflow and outflow during the course of operations of the firm are as follow: Collection from customers Rs 15,30,000 Cash paid to suppliers Rs 10,80,000 Cash paid to employees and other expense Rs 2,46,000 Income tax paid during the year Rs 75,000 2. During 2007, the company purchased a building for Rs 1,00,000.
You are required to prepare the Cash Flow Statement and comment on the cash flow condition of the company.