question_answer

Following is the balance sheet of Krishtec Ltd. for the year ended 31st March, 2016 and 2017. Balance Sheet as at 31st December, 2016 and 2017

	Particulars	2016 ? 17 Amt (Rs.)	2015 ? 17 Amt (Rs.)
I.	EQUITY AND LIABILITIES
	1. Shareholders' Funds
	(a) Share Capital	6,00,000	4,00,000
	(b) Reserves and Surplus (Statement of Profit and Loss)	1,75,000	2,00,000
	2. Non-current Liabilities
	Long-term Borrowings	2,20,000	1,75,000
	3. Current Liabilities
	Trade Payables	30,000	25,000
	Total	10,25,000	8,00,000
II.	ASSETS
	1. Non-current Assets
	Fixed Assets	6,00,000	4,50,000
	2. Current Assets
	(a) Inventories	1,00,000	50,000
	(b) Trade Receivables	1,55,000	1,15,00
	(c) Cash and Cash Equivalents	1,70,000	1,85,000
	Total	10,25,000	8,00,000

Prepare a cash flow statement after taking into account the following adjustments:

(i) The company paid interest Rs. 18	000 on its long-term borrowings.
(ii) Depreciation charged on tangible fixed assets was Rs. 60	000.

Answer:

Net cash used in operating activities = Rs. 32,000 Net cash used in investing activities = Rs. 2,10,000 Net cash flow from financing activities = Rs. 2,27,000