Following were the Balance Sheets of a company as on 31 December 2007 and 31 December 2006:
|
Liabilities |
2007 |
2006 |
Assets |
2007 |
2006 |
|
Share Capital |
1,500 |
1,250 |
Fixed Assets at cost |
2,180 |
1,910 |
|
Reserves |
3,410 |
1,380 |
|
|
|
|
Long-term Loan |
1,110 |
1,040 |
Less: Provision for |
|
|
|
|
|
|
Depreciation |
1,450 |
1,060 |
|
Sundry Creditors |
150 |
1,890 |
|
730 |
850 |
|
Interest Payable |
230 |
100 |
Long-term Investments |
2,500 |
2,500 |
|
Income Tax Payable |
400 |
1,000 |
Inventories |
900 |
1,950 |
|
|
|
|
Sundry Debtors |
1,700 |
1,200 |
|
|
|
|
Short-term Investments |
670 |
135 |
|
|
|
|
Cash & Bank |
200 |
25 |
|
|
|
|
Income Receivable on |
|
|
|
|
|
|
Investments |
100 |
— |
|
|
6,800 |
6,660 |
|
6,800 |
6660 |
Statement of Profit & Loss A/c for the year that ended on 31 December 2007
|
|
Rs. in “000 |
Rs. in “000 |
|
Sales |
|
30,650 |
|
Less: Cost of Sales: |
|
|
|
Materials Consumed |
19,000 |
|
|
Wages &Overheads |
7.000 |
26,000 |
|
Gross Profit |
|
4,650 |
|
Less: Depreciation on Fixed Assets |
450 |
|
|
Administrative &Selling Expenses |
850 |
|
|
Interest on Loan |
400 |
|
|
Loss on Sale of long-term Investment |
100 |
1.800 |
|
|
|
2,850 |
|
Add: Income from Investment |
SOO |
|
|
Insurance Claim Received from Earthquake Disaster settlement |
180 |
680 |
|
Net Profit before Tax |
|
3,530 |
|
Less: Income Tax |
|
300 |
|
Net Profit after Tax |
|
3,230 |
Additional Information:
- Plant, having an Original Cost of Rs. 80,000 and accumulated Depreciation of Rs. 60,000, was sold in 2007 for Rs. 20,000.
- Investments (long-term) further made during 2007 was Rs. 500 (in lakhs).
- An amount of Rs. 2,50,000 was raised from the long-term borrowing.
- Income Tax of Rs. 3,00,000 as provided in the statement of Profit & Loss A/c included Rs. 30,000 as Tax deducted at source on income from the Long-term Investment.
Prepare a Cash Flow Statement for the year that ended on 31 December 2007 separately under Direct Method and Indirect Method.