The profit of Philips Ltd. after appropriations was Rs. 2,50,000. This profit arrived at after taking into consideration the following items:
$$\begin{array}{ccc}\text{S. No.}& \text{Particulars}& \text{Amount}\\ 1.& \text{Depreciation on Fixed Tangible Assets (Machinery)}& 20,000\\ 2.& \text{Loss on Sale of Fixed Tangible Assets (Furniture)}& 2,000\\ 3.& \text{Goodwill written off}& 9,000\\ 4.& \text{Provision for Taxation}& 35,000\\ 5.& \text{Transfer to General Reserve}& 17,500\\ 6.& \text{Gain on Sale fo Fixed Tangible Assets (Machinery)}& 8,000\end{array}$$

Additional Information:

$$\begin{array}{ccc}\text{Particulars}& \text{31-03-2016}& \text{31-02-2017}\\ & & \\ \text{Trade Receivables (All good)}& 50,000& 62,000\\ \text{Trade Payables}& 45,000& 55,000\\ \text{Inventory}& 12,000& 8,000\\ \text{Income Received in Advance}& 8,000& -\\ \text{Outstanding Expenses}& 6,000& 3,000\\ \text{Prepaid Expenses}& -& 5,000\\ & & \end{array}$$

X Ltd. made a profit of Rs. 5,00,000 after considering the following items:
$$\begin{array}{cc}\text{I. Goodwill written off}& Rs.5,000\\ \text{II. Depreciation on Fixed Tangible assets}& Rs.50,000\\ \text{III. Loss on sale of Fixed Tangible Assets (Machinery)}& Rs.20,000\\ \text{IV. Provision for Doubtful Debts}& Rs.10,000\\ \text{V. Gain on sale of Fixed Tangible Assets (Land)}& Rs.7,500\end{array}$$

Additional Information :
$$\begin{array}{ccc}\text{Particulars}& \text{31-03-2017}& \text{31-02-2016}\\ & & \\ \text{Trade Receivables}& 78,000& 52,000\\ \text{Prepaid Expenses}& 3,000& 2,000\\ \text{Trade Payables}& 51,000& 40,000\\ \text{Expenses Payable}& 20,000& 34,000\\ & & \end{array}$$
You are required to calculcate cash flow from operating activities.

Calculate cash from operating activities from the following balances:

$$\begin{array}{ccc}\text{Particulars}& \text{31st March, 2016}& \text{31st March, 2017}\\ \text{Current Assets and Current Liabilities:}& & \\ \text{Debtors}& 80,000& 60,000\\ \text{Bills Receivable}& 7,000& 10,000\\ \text{Creditors}& 50,000& 55,000\\ \text{Bills Payable}& 8,000& 6,000\\ \text{Outstanding Expenses}& 1,000& 1,500\\ \text{Prepaid Expenses}& 1,800& 1,600\\ \text{Accrued Income}& 800& 900\\ \text{Income received in Advance}& 700& -\end{array}$$

Operating profit before working capital changes was Rs. 1,00,000.

Following information is given to you :

$\begin{array}{ccc}& & \text{Rs.}\\ \text{Revenue from Operations}& & 4,40,000\\ \text{Less: Purchases}& 2,50,000& \\ \text{Changes in Inventories}& & \\ \text{(Opening Inventory - Closing Inventory)(40,000 - 20,000)}& 20,000& \\ \text{Direct Expenses}& \underset{–}{30,000}& \underset{–}{3,00,000}\\ \text{Gross Profit}& & \underset{–}{1,40,000}\end{array}$

$\begin{array}{c}\\ \text{BALANCE SHEET}\\ asat31stMarch,2018\end{array}\begin{array}{cccc}& Particulors& Note& \text{Rs.}\\ & & No& \\ I.& \text{EQUITY AND LIABILITIES:}& & \\ & \text{Shareholder's Funds:}& & \\ & \text{(a) Share Capital}& & 3,00,000\\ & \text{(b) Reserve and Surplus}& 1& 1,00,000\\ & \text{Current Liabilities :}& & \\ & \text{(a) Trade Payables}& & 1,50,000\\ & \text{(b) Other Current Liabilities}& 2& 50,000\\ & \text{TOTAL}& & \overline{\underset{–}{6,00,000}}\\ \text{II}.& \text{ASSETS}:& & \\ & \text{Non-Current Assets}& & 4,00,000\\ & \text{Current Assets}:& & \\ & \text{(a) Inventory}& & 20,000\\ & \text{(b) Trade Receivable}& & 1,00,000\\ & \text{(c) Cash \& Cash Equivalents}& & 80,000\\ & \text{TOTAL}& & \overline{\underset{–}{6,00,00}}\end{array}$

Notes : (1) Reserve & Surplus :

Profit & Loss Balance $\underset{–}{1,00,000}$

(2) Other Current Liabilities

Outstanding Salary $\underset{–}{50,000}$

On the basis of the informations given above, calculate any two of the following ratios :

(i) Current Ratio,

(ii) Inventory Turnover Ratio, and

(iii) Proprietary Ratio.

Rita, Geeta and Ashish were partners in a firm sharing profits/ losses in the ratio 3 : 2 : 1. On March 31, 2012 their balance sheet was as follows.

$$\begin{array}{cccccc}\text{Capital and Liabilities}& & \text{Amt.}& \text{Assets}& & \text{Amt.}\\ \text{Capitals:}& & & \text{Cash}& & 22,500\\ \text{Rita}& 80,000& & \text{Debtors}& & 52,300\\ \text{Geeta}& 50,000& & \text{Stock}& & 36,000\\ \text{Ashish}& \underset{–}{30,000}& 1,60,000& \text{Investments}& & 69,000\\ \text{Creditors}& & 65,000& \text{Plant}& & 91,200\\ \text{Bills Payable}& & 26,000& & & \\ \text{General Reserve}& & 20,000& & & \\ & & \underset{–}{}& & & \underset{–}{}\\ & & \underset{–}{2,71,000}& & & \underset{–}{2,71,000}\end{array}$$

On the above mentioned date the firm was dissolved.

1. Rita was appointed to realise the assets. Rita was to receive 5% commission on the rate of assets (except cash) and was to bear all expenses of realisation.

2. Assets were realised as follows:
Debtors Rs. 30,000
Stock Rs. 26,000
Plant Rs. 42,750

3. Investments were realised at 85% of the book value.

4. Expenses of realisation amounted to Rs. 4,100 .

5. Firm had to pay Rs. 7,200 for outstanding salary not provided for earlier.

6. Contingent liability in respect of bills discounted with the bank was also materialised and paid off Rs. 9,800.

Prepare realisation account, capital accounts of partners and cash account.

What is the cash flow from operating activities under direct method using the following information:

$\begin{array}{ccc}\text{December 31}& 2011& 2010\\ \text{Accounts Receivable}& \$34,130& \$28,410\\ \text{Prepaid Rent}& 20,000& 25,000\\ \text{Prepaid Insurance}& 6,800& 6,000\\ \text{Inventory}& 23,030& 15,450\\ \text{Accounts Payable}& 14,590& 31,300\\ \text{Salaries Payable}& 8,310& 5.120\\ \text{Interest Payable}& 700& 360\\ \text{Income Tax Payable}& 2,340& 0\\ \text{Year Ended December 31}& 2011& \\ \text{Net Sales}& 64,970& \\ \text{Salaries Expense}& 8,610& \\ \text{Rent Expense}& 5,000& \\ \text{Insurance Expense}& 3,200& \\ \text{Interest Expense}& 1,650& \end{array}$