Financial Statements for the year that ended on 30 September 2008 of Karol Bag Ltd are given as follows:
|
|
|
Rs. in ’000 |
|
Sales (A) |
|
5,684 |
|
Cost of Goods Sold (including a Depreciation of Rs. 2,80,000) |
|
2,740 |
|
Operating Expenses (including a Depreciation of Rs. 3,10,000) |
|
1,030 |
|
Interest Expenses |
|
80 |
|
Loss on Sale of Equipment |
|
76 |
|
Net Loss on Fire |
|
220 |
|
Income Tax |
|
615 |
|
|
Total Expenses (B) |
4,761 |
|
|
Net Income (A – B) |
923 |
Comparative Balance Sheet (Rs. in ’000)
|
|
As on 30 June 2008 |
As on 30 June 2007 |
|
Liabilities |
|
|
|
Capital stock, Rs. 10 per value |
9,600 |
6,800 |
|
Premium on Stock |
6,400 |
3,600 |
|
Retained Earnings |
2,477 |
1,872 |
|
Bonds Payable, Net of Amortized Amount |
3,765 |
3,750 |
|
Bank Loan Payable |
1,230 |
850 |
|
Accounts Payable |
1,094 |
963 |
|
Accrued Operating Expenses |
167 |
152 |
|
Income Tax Payable |
370 |
210 |
|
|
25,103 |
18,197 |
|
|
As on 30 June 2008 |
As on 30 June 2007 |
|
Assets |
|
|
|
Land |
2,630 |
1,520 |
|
Building, Net of Accumulated Depreciation |
4,360 |
3,810 |
|
Equipment, Net of Accumulated Depreciation |
4,784 |
4,400 |
|
Investment in Hudco Ltd |
3,800 |
0 |
|
Inventory |
3,872 |
2,960 |
|
Accounts Receivable |
2,641 |
2,840 |
|
Temporary Investment |
150 |
65 |
|
Cash |
2,820 |
2,567 |
|
Prepaid Expenses |
46 |
35 |
|
|
25,103 |
18,197 |
Additional Information:
- The investments in Hudco Ltd were acquired upon the issuance of 1,90,000 shares of capital, having a market value of Rs. 20 per share at the time of acquisition.
- A fire during the financial year destroyed the wing of a building that had a Net Book Value of Rs. 2,60,000 at the time of loss. Equipment having a Net Book Value of Rs. 3,80,000 was also destroyed in the fire. The insurance recovery amounted to Rs. 4,20,000.
- The Net Book Value of the equipment sold during the financial year was Rs. 2,38,000.
- Included in the total depreciation charges for the year was depreciation of Rs. 1,60,000 on building.
- No bonds were issued during the financial year.
- The only entries to retained earnings were those to close out the net income for the year and to record the dividend declared for the year.
You are asked to prepare a Cash Flow Statement for the year that ended on 30 June 2008 as per AS-3.