Analysis of Financial Statements- -CBSE XI

Not
4.98 Extraordinary Items: Pa
and
calculate Net Profit before Tax
9. From the following information,
Surplus, i.e, Balance in Statement of Profit
&Loss (Opening) 1,00,000
Surplus, i.e., Balance in Statement of Profit
& Loss (Closing) 3,36,000 1.

Dividend paid in the current year

72,000
Interim Dividend Paid during the year
90,000
Transfer toReserve
1,00,000
Provision for Tax for the current year
1,50,000
Refund of Tax
3,000
Loss due to Earthquake
2,00,000
Insurance Proceeds from earthquake disaster
settlement
[Ans.: Net Profit before Tax and Extraordinary Items = 7,45,000.)
1,00,000 Cas
12
pa
Changes
Calculation of Operating Profit before Working Capital
Operating Profit before Working Capital Changes: Su
10. From the following information, calculate 4,47,000 Tra
Net Profit before Tax and Extraordinary Items 84,000 Pra
Depreciation on Machinery
16,800
Interest on Borrowings
18,600
Goodwill Amortised
18,000 Go
Loss on Sale of Furniture
6,000 Pre
Premium on Redemption of Preference Shares
12,000 Tra
Gain (Profit) on Sale of Investments
27,600
Interest and Dividend Received on Investments
5,44,800.]
[Ans.: Operating Profit before Working Capital Changes =
31st March, 2023 and additional information,
11. From the following Balance Sheet of KBC Ltd. as at
calculate Operating Profit before Working Capital Changes: 13
Note No.31st March, 31st March, Pa
Particulars 2023 ®) 2022 ()
Ne
I EQUITY AND LIABILITIES Pr
1. Shareholders' Funds Fi
5,00,000 S,00,000
(a) Share Capital De
6,70,000| S,00,000
(b) Reserves and Surplus Lo
2. Current Liabilities
50,000 Pa
(a) Trade Payables 60,000
G
20,000 15,000
(b) Other Current Liabilities (Outstanding Expenses) 90,000 In
(c) Short-term Provisions (Provision for Tax) 1,00,000
13,50,000 11,55,000
Total
II. ASSETS 14
1. Non-Current Assets
(a) Property, Plant and Equipment and intangible Assets: 7,30,000
-Property, Plant and Equipment 7,50,000
3,00,000 D
(b) Non-Current Investments 2,50,000
1,25,000 G
2. Current Assets 3,50,000
13,50,000 11,55,000 G
Total A
4.98
Analysis of Financial Statements--CBSE Xu
9. From the following information,calculate Net
Proft before Tax and Extraordinary tems.
Surplus, i.e., Balance in Statement of Profit &Loss
Surplus, iie., Balance in Statement of Proft &Loss (Opening) 1,00,000
Dividend paid in the current year (Closing) 3,36,000
Interim Dividend Paid during the year 72,000
Transfer to Reserve 90,000
Provision for Tax for the current year 1,00,000
Refund of Tax 1,50,000
Loss due to Earthquake 3,000
Insurance Proceeds from earthquake disaster 2,00,000
settlement 1,00,000
(Ans.: Net Profit before Tax and Extraordinary Items =7,45,000.1

Calculation of Operating Profit before Working Capital Changes

10. From the following information, calculate Operating Profit
Net Profit before Tax and
before Working Capital Changes:
Extraordinary Items 447,000
Depreciation on Machinery
Interest on Borrowings 84,000
16,800
Goodwill Amortised
Loss on Sale of Furniture 18,600
18,000
Premium on Redemption of Preference Shares
6,000
Gain (Profit) on Sale of Investments
Interest and Dividend Received on 12,000
Investments 27,600
[Ans.:Operating Profit before Working Capital Changes = 5,44,800.]
11. From the following Balance Sheet of KBC Ltd. as at 31st
March, 2023 and additional information,
calculate Operating Profit before Working Capital Changes:
Particulars
Note No. |31st March,|31st March,
L EQUITY AND LIABILITIES
2023 () 2022 ()
1. Shareholders' Funds
(a) Share Capital
(b) Reserves and Surplus
5,00,000| 5,00,000
2. Current Liabilities 6,70,000 5,00,000
(a) Trade Payables
60,000 50,000
(b) Other Current Liabilities (Outstanding Expenses)
20,000 15,000
(c) Short-term Provisions (Provision for Tax)
Total 1,00,000 90,000
II. ASSETS 13,50,000 11,55,000
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
-Property, Plant and Equipment
7,50,000 7,30,000
(b) Non-Current Investments
2,50,000 3,00,000
2. Current Assets
3,50,000 1,25,000
Total
13,50,000 11,55,000
Cash Flow Statement 4.99

Note to Accounts
Particulars 31st March, 31st March,
2023 () 2022 ®)
1. Reserves and Surplus
General Reserve 5,00,000 4,00,000
Surplus, i.e., Balance in Statement of Profit &Loss 1,70,000 1,00,000
6,70,000| 5,00,000

Additional Information: Depreciation for the year was 75,000.

(Ans.: Operating Profht before Working Capital Changes =3,45,000.]
Cash Flow from Operating Activities
12. Calculate Cash Flow from Operating Activities from the following details:
Particulars 31st March, 31st March,
2023 () 2022 ()
Surplus, i.e., Balance in Statement of Profit &Loss 80,000 60,000
Trade Receivables 25,000 31,000
Provision for Depreciation 40,000 30,000
Inventories 80,000 60,000
Outstanding Rent 12,000 21,000
Goodwill 30,000 38,000
Prepaid Insurance 1,000 2,000
Trade Payables (Creditors) 13,000 19,000
[Ans.: Cash Flow from Operating Activities = 10,000.]
Hint: Decrease in goodwill willbe added to Net Profit before Tax while calculating Cash Flow from Operating
Activities, it being Non-Cash/Non-Operating item.]
13. Compute Cash Flowfrom Operating Activities from the following information:
Particulars
Net Profit after Provision for Tax and Payment of Dividend 2,15,000
Provision for Tax 45,000
Final Dividend paid during the year 50,000
25,000
Depreciation
Loss on Sale of Machinery 10,000
Patents Amortised 30,000
70,000
Gain (Profit) on Sale of Land
Income Tax Refund 30,000

[Ans.: Cash Flow from Operating Activities = 2,60,000.]

14. Calculate Cash Flow from Operating Activities from the following:
(0) Profit for the year is 7,00,000 after considering the following items:
Particulars
40,000
Depreciation on Fixed Assets
20,000
Goodwill Amortised
90,000
Gain (Profit) on Sale of Land
60,000
Appropriation of Profit towards General Reserve
4.100 Analysis of Financial Statements-CBSE XI
(ii) Following is the position of Current Assets and Current Liabilities:
Particulars
Closing Opening
Balances )Balances ()
Trade Payables 50,000 75,000
Trade Receivables
75,000 60,000
Prepaid Expenses 10,000 18,000
[Ans.: Cash Flow from Operating Activities = 6,98,000.]
15. Charles Ltd. earned a profit of 1,00,000 after charging depreciation of 20,000 on
assets and a transfer
to General Reserve of 30,000. Goodwill amortised was 7,000 and gain on
sale of machinery was
3,000.Other information available is (changes in the value of Current Assets and Current Liabilities): trade
receivables showed an increase of 3,000, trade payables an increase of*6,000; Prepaid expenses an increase
of 200; and outstanding expenses a decrease of 2,000.
Ascertain Cash Flow from Operating Activities. (NCERT, Modifhed)
[Ans.: Cash Flow from Operating Activities = 1,54,800; Net Profit before Tax =
1,30,000.]
16. From the following information, calculate Cash Flow from Operating
Activities:
Particulars
31st March, 31st March,
2022 () 2023 (3)
Equity Share Capital 20,00,000 30,00,000
10% Preference Share Capital
2,00,000 1,00,000
Securities Premium
95,000
Surplus, ie, Balance in Statement of Profit &Loss
4,00,000 8,00,000
10% Debentures
10,00,000 10,00,000
Additional Information:
(i) Preference shares were redeemed on 31st March,
2023 at a premium of 5%.
(i) Dividend on equity shares was paid @8%.
(ii) Fresh issue of equity shares was made on 1st April
2022.
(Ans.: Cash Flow from Operating Activities =7,60,000.]
17. Sunrise Ltd., reported Net Profit after Tax of ? 6,40,000 for
the year ended 31st March, 2023. The
relevant extract from Balance Sheet as at 31st March, 2023 is:
Particulars
|31st March, 31st March,
2023 (3) 2022 ()
Irventores
1,15,000 1,25,000
Trade Receivables
1,50,000 1,10,000
Prepaid Expenses 20,000 6,000
Trade Payatles
Pronsion for Tas 1,10,000 80,000
20,000 15,000
Depreciation charged on Plant and Machinery ? 55,000, insurance claim received ?
on sale of investnent 20,000 appeared in the 50,000, gain (proft)
Statement of Profit & Loss for the year ended
31st March, 2023. Calculate Cash Flow from
Operating Activities.
(Ans.: Cash Flow from Operating Activities =6,66,000.)
CashFlowStatement
4.101
Compute Cash Flow from Operating Activities from the following:
CObeoft for the year ended 31st March, 2023 is 10,000 after providing for depreciation
() Current Assets and Current Liabilities of the business for the years ended 31st March, of2022
2,000.
and
2023 are as follows:
Particulars 31st March, 31st March,
2022 () 2023 )
TradeReceivables
14,000 15,000
Provision for Doubtful Debts 1,000 1,200
Trade Payables 13,000 15,000
Inventories 5,000 8,000
oher Current Assets (Other than Prepaid Expenses and Accrued Income) 10,000 12,000
Expenses Payables 1,000 1,500
Prepaid Expenses 2,000 1,000
Accrued Income
3,000 4,000
Income Received in Advance 2,000 1,000
[Ans.: Cash Flow from Operating Activities = 7,700.]
19. Calculate Cash Flow from Operating Activities from the following information:
Particulars
Net Profit (Difference between Closing and Opening Balance of Surplus, ie,
Balance in Statement of Profit &Loss) 8,00,000
Final Dividend paid in the year 1,10,000
Compensation for Natural Disaster credited to Statement of Profit &Loss 75,000
Depreciation 1,50,000
Loss on Sale of Investment 30,000
Gain (Profit) on Sale of Land 90,000
Provision for Tax
1,10,000
Dividend Received 20,000
Decrease in Curent Assets (Other than Cash and Cash Equivalents) 40,000
Inaease in Current Liabilities (0ther than Bank Overdraft and Cash Credit) 70,000
Decrease in Current Liabilities (Other than Bank Overdraft and Cash Credit) 10,000
increase in Current Assets (Other than Cash and Cash Equivalents) 60,000
Income Tax Refund 10,000
income Tax Paid 1,20,000
[Ans.: Cash Flow from Operating Activities = 10,10,000.]
20. Following information is related to Vishwas Ltd.:
STATEMENT OF PROFIT &LOSS for the yearended 31st March,2023
Particulars Note No.
. Revenue from Operations (Net Sales) 30,00,000
IL. Other Income
1 45,000
I. Total Revenue
V. Expenses: (+) 30,45,000
la) Purchases of Stock-in-Trade 23,03,000
(b) Change in Inventories of Stock-in-Trade (16,000)
() Depreciation and Amortisation Expenses 1,85,000
(d) Other Expenses 3 3,29,000
Total Expenses 28,01,000
V. Profit before Tax
(00)-IV)
I. Less: Provision for 2,44,000
VI. Proft after Tax (V Tax 64,000
-VI) 1,80,000
4.102 Analysis of FinancialStatements--CBSE XII
Notes to Accounts

Particulars
1. Other Income
(a) Dividend Received
(b) Gain (Profit) on Sale of Plant 5,000
40,000
2. Change in Inventories of Stock-in-Trade 45,000
Opening Inventories 2,84,000
Less: Closing Inventories 3,00,000
(16,000)
3. Other Expenses
(a) Office Expenses 58,000
(b) Selling Expenses 2,35,000
(c) Loss on Sale of Assets
36,000
3,29,000
Other Information: Balance as on Balance as on
31st March, 2023 () 31st March, 2022 ()
Trade Payables 2,78,000 2,50,000
Trade Receivables 4,52,000 4,15,000
Ofice Expenses Outstanding 5,000
Selling Expenses Outstanding 25,000 22,000
Calculate Cash Flow from Operating Activities.
[Ans.: Cash Flow from Operating Activities =3,29,000.]
Cash Flow from investing Activities
21. From the following information, calculate the amount of Cash Flow from Investing
Activities:
Acquired machinery for? 10,00,000, paying 10% immediately in cash and accepting a draft for the balance
in favour of the vendor, payable after three months. (CBSE 2020)
[Ans.: Cash Used in Investing Activities 1,00,000.]
(Hint: Draft (Bill Payable) does not involve cash outflow.]
22.. Mars Ltd. has Plant and Machinery whose written down value on 1st April, 2022 was
9,60,000 and on
31st March, 2023 was 10,50,000. Depreciation for the year was 35,000. In the beginning of the year, a
part of plant was sold for 45,000 which had a written down value of 30,000.
Calculate Cash Flow from Investing Activities.
[Ans.: Cash Usedin Investing Activities =1,10,000.]
23. From the following information, calculate Cash Flow from Investing Activities:
Particulars 31st March, 31st March,
2023 () 2022 ()
Investment in 10% Debentures
10,00,000 5,00,000
Land and Building 15,00,000 9,00,000
Additional Information:
1. Half of the investments held in the beginning of the year were sold at 10% profit.
2. Depreciation on Land and Building was 50,000 for the year.
3. Interest received on investments 75,000.
[Ans: Cash Used in Investing Activities = 10.5,000.]