Adamjee Coaching Centre
Campus 18 Kharadar
B.Com II Advanced Accounting
Cash Flow Statement Test
The following data have been extracted from the balance sheet Muaaz Ltd.
2012 2013
Debit Balances
Cash 4,000 21,000
Accounts Receivable 250,000 170,000
Merchandise inventory 310,000 260,000
Retained Earnings 10,000 -
Prepaid Supplies 7,000 14,000
Equipment 300,000 700,000
Patents 15,000 10,000
896,000 724,000
Credit Balances
Accumulated Depreciation 50,000 65,000
Accounts Payable 65,000 70,000
Tax Payable 15,000 25,000
Dividend payable - 1,000
Bonds Payable 546,000 235,000
Share Capital 195,000 203,000
Share Premium 25,000 75,000
Retained Earnings - 50,000
896,000 724,000
Other Information
During the year and equipment costing 100,000 was sold for Rs 85,000. The company
received 80,000 cash and remaining is receivable on March 31, 2015. There was a gain
of Rs 15,000 in this transaction.
Cash dividend declared Rs 5,000 and Stock dividend Rs 4,000
Tax rate was 10%
(Hint: Net income after tax = 90%, Tax = 10% and Income before tax and interest =
100%)
Required: Cash Flow statement under indirect method.
Prepared by:
Sir M Asad Ali
MBA (Finance), MA (Eco), (CA)