Cash Flow Statement Exercise

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Cash Flow Statement Exercise

by Rajkumar KC
(Kathamandu, Nepal)

(Rs. = Rupees = Indian currency)

For the Year Ended 31, Ashad 2068
Amount (Rs. )
Sales revenue 400,000
Cost of goods sold 240,000
Gross profit 160,000
General and administrative expenses 40,000
Depreciation expense 80,000
Loss on sale of plant assets 10,000
Total expenses and losses 130,000
Income before interest and taxes 30,000
Interest expense 15,000
Income before taxes 15,000
Income tax expense 5,000
Net income 10,000

Ashad 31
2068(Rs.) 2067(Rs.)
Cash 25,000 40,000
Accounts receivable 80,000 69,000
Inventory 75,000 50,000
Prepaid rent 2,000 18,000
Total current assets 182,000 177,000
Land 60,000 150,000
Plant and equipment 575,000 500,000
Accumulated depreciation (310,000) (250,000)
Total long-term assets 325,000 400,000
Total assets 507,000 577,000
Accounts payable 145,000 140,000
Other accrued liabilities 50,000 45,000
Income taxes payable 5,000 15,000
Total current liabilities 200,000 200,000
Long-term bank loan payable 75,000 150,000
Common stock 100,000 100,000
Retained earnings 132,000 127,000
Total stockholders' equity 232,000 227,000
Total liabilities and stockholders' equity 507,000 577,000

The Sharma and Bhandari Company has declared and paid dividends of Rs. 5,000 during the year.

The company acquired new plant assets for Rs. 125,000 during the year.

And land was sold for cash at its book value.

Plant assets were sold during 2068 for Rs. 20,000 in cash. The original cost of the assets sold was Rs. 50,000, and their book value was 30,000.

A portion of the bank loan was repaid.

Prepare the cash flow statement.

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