Q.1 The net income reported on the income statement for the current year was Rs.87,100.

Depreciation recorded on equipment and a building amounted to Rs.31,750 for the

year. Balances of the current asset and current liability accounts at the beginning and
end of the year are as follows:
End of year Beginning of year
Cash Rs.64,250 Rs.60,500
Accounts receivables (Net) 98,750 91,250
Inventories 110,000 95,000
Prepaid expenses 6,400 7,650
Accounts payable 77,200 72,700
Salaries payable 3,250 5,750
Prepare the cash flows from operating activities using indirect methods both.

Q.2 The net income reported on the income statement for the current year was Rs.92,125.
Depreciation recorded on store equipment for the year amounted to Rs.43,500.
Balances of the current asset and current liability accounts at the beginning and end of
the year are as follows:
End of year Beginning of year
Cash Rs.70,150 Rs.66,500
Trade receivables (Net) 79,250 83,750
Merchandise Inventory 115,000 97,000
Prepaid expenses 8,000 7,500
Accounts payable 70,200 73,200
Wages payable 6,900 5,650
Prepare the cash flows from operating activities using indirect methods both.

Q.3 Austin Inc. reported a net cash flow from operating activities of Rs.46,500 for the year
ended December 31, 2013. The following information was reported in the cash flows
from operating activities using the indirect method:
Decrease in the income tax payable Rs. 1,250
Decrease in inventories 5,500 Determine
the net Depreciation 9,400 income for
the Gain on sale of investment 14,250 year ended
Increase in accounts payable 7,300 December
31, Increase in prepaid expenses 500 2014.
Increase in trade receivables 4,700
Q.4 Austin Inc. reported
a net cash flow from operating activities of Rs.30,000 for the year ended December 31,
2013. The following information was reported in the cash flows from operating
activities using the indirect method:
Increase in the income tax payable Rs. 1,500
Increase in inventories 6,500 Determine
the net Depreciation 10,000 income for
the Loss on sale of investment 10,150 year ended
Decrease in accounts payable 8,500 December
31, Decrease in prepaid expenses 800 2014.
Decrease in trade receivables 5,800
Q.1 XYZ Co.
Comparative Balance Sheet
ASSETS Dec31, 2006 Dec 31, 2005
Cash 140,000 100,000
A/c Receivable 210,000 150,000
Inventory 500,000 430,000
Prepaid Rent 20,000 60,000
Plant & Equipment 1900,000 1400,000
Long Term Investment 700,000 900,000
Total 3,470,000 3,040,000
LIABILITIES & EQUITIES
Accumulated Depreciation 650,000 540,000
Account Payable 260,000 250,000
Accrued Liabilities 100,000 120,000
Tax Payable 490,000 490,000
Debentures Payable 500,000 400,000
Ordinary Share Capital 800,000 700,000
Retained Earning 670,000 540,000
Total 3470,000 3040,000
Additional Information:
Dividend of Rs. 180,000 declared & paid during the year. Sale investment for Rs. 250,000.
Required:
Prepare a cash flow statement using indirect method showing clearly:

Q.2 Comparative Balance Sheet

ASSETS June 30, 2009 June 30, 2008
Cash Rs.42,000 Rs.28,000
A/c Receivable 74,200 49,000
Inventory 70,000 84,000
Machinery 490,000 357,000
Land 70,000 21,000
Patents 5,600 7,000
Total 751,800 546,000
EQUITIES
Allowance for depreciation (Machinery) 91,000 63,000
Account Payable 58,800 56,000
Long term loans 105,000 70,000
Share Capital 245,000 210,000
Retained Earning 252,000 147,000
Total 751,800 546,000
The company declared cash dividend of Rs. 31,500 during the year 2009.
Required:
Prepare a cash flow statement using indirect method for the period ended on June 30,
Q3 Comparative balance sheet of “XY” & Co. Ltd. is given as follow.
“XY” & Co. Ltd.
Comparative Balance Sheet
ASSETS June 30, 2008 June 30, 2007
Cash Rs.112,000 Rs.100,000
A/c Receivable 150,000 140,000
Inventory 132,000 135,000
Equipment 60,000 40,000
Furniture 93,000 55,000
Patents 20,000 25,000
Total 567,000 495,000
EQUITIES
Allowance for depreciation (Equipment) 16,000 12,000
Allowance for depreciation ( Furniture) 13,000 5,000
Account payable 24,000 30,000
Accrued expenses 8,000 10,000
Long term loans 100,000 120,000
Share Capital 370,000 290,000
Retained Earning 36,000 28,000
Total 567,000 495,000
Additional Information:
The company declared cash dividend of Rs. 40,000 during the year 2008.

Required: Prepare a cash flow statement using indirect method for the period ended on June
30,

Q. Comparative balance sheets of Salman & Sons are as follow.

Salman & Sons
Comparative Balance Sheets
ASSETS June 30, 2008 June 30, 2007
Cash Rs. 14,400 Rs.4,800
A/c Receivable 48,000 60,000
Inventory 114,000 156,000
Prepaid expense 8,400 3,600
Land 78,000 90,000
Building 240,000 150,000
Equipment 21,600 12,000
Retained earning 12,000 ----------
Total 536,400 476,400
LIABILITIES & EQUITIES
Allowance for bad debts 4,800 6,000
Allowance for depreciation (Building) 36,000 324,00
Allowance for depreciation (Equipment) 3,600 6,000
Account Payable 60,000 75,600
 Accrued expenses 12,000 8,400
Bonds Payable 120,000 96,000
Ordinary Share Capital 300,000 240,000
Retained Earning ---------- 12,000
Total 536,400 476,400
Additional Information:
During the year land costing Rs. 12,000 was sold at a gain of Rs. 6,000 for cash and the old
equipment costing Rs. 12,000 was sold for Rs. 2400 for cash.
Required:
Prepare a cash flow statement using indirect method for the period ended on June 30, 2008.

Q.1 The comparative balance sheet of C. T. Green Inc. for June 30, 2014 and 2013 is as follows:
June 30,2014 June 30,2013
Assets
Cash Rs. 82,000 Rs. 64,800
Trade receivables (net) 104,800 91,000
Inventories 127,400 108,900
Investments - 90,000
Land 102,000 -
Equipment 425,700 329,700
Accumulated depreciation (171,800) (135,800)
670,100 548,600
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) 70,900 63,000
Accrued expenses (operating expenses) 6,100 5,000
Dividends payable 14,400 12,000
Common stock, Rs.10 par 360,000 300,000
Paid-in capital in excess of par—common stock 31,400 19,400
Retained earnings 187,300 149,200
670,100 548,600
The following additional information was taken from the records of C. T. Green Inc.
a) Equipment and land were acquired for cash.
b) There were no disposals of equipment during the year.
c) The investments were sold for Rs.98,000 cash.
d) The common stock was issued for cash.
e) There was a Rs.88,500 credit to Retained Earnings for net income.
f) There was a Rs.50,400 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows
from operating activities.

Q.2 The comparative balance sheet of Kane Inc. at June 30, 2014 and 2013 is as follows:
June 30,2014 June 30,2013
Assets
Cash Rs. 45,100 Rs. 64,600
 Trade receivables (net) 116,300 129,300
Merchandise inventory 354,700 346,400
Prepaid Expenses 5,200 3,600
Plant Assets 440,000 396,800
Accumulated depreciation (232,300) (266,600)
729,000 674,100
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) 71,300 65,400
Mortgage note payable - 101,300
Common stock, Rs.30 par 300,000 270,000
Paid-in capital in excess of par—common stock 39,800 34,800
Retained earnings 317,900 202,600
729,000 674,100
Additional data obtained from the income statement and from an examination of the
accounts in the ledger are as follows:
a. Net income, Rs.155,300
b. Depreciation reported on the income statement, Rs.38,600.
c. An addition to the building was constructed at a cost of Rs.116,100, and fully
depreciated equipment costing Rs.72,900 was discarded, with no salvage
realized.
d. The mortgage note payable was not due until 2000, but the terms permitted
earlier payment without penalty.
e. 1,000 shares of common stock were issued at 35 for cash.
f. Cash dividends declared and paid, Rs.40,000.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows
from operating activities.

Q.3 The comparative balance sheet of Paton Corporation at December 31, 2014 and 2013
is as follows:
June 30,2014 June 30,2013
Assets
Cash Rs. 72,400 Rs. 66,800
Trade receivables (net) 87,900 100,500
Inventories 192,100 178,600
Prepaid expenses 6,400 2,900
Land 75,000 75,000
Building 480,600 316,800
Accumulated depreciation-building (157,500) (144,000)
Machinery and equipment 206,300 206,300
Accumulated depreciation-machinery & equip. (93,000) (81,300)
Patent 30,000 37,500
900,200 759,100
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) 27,200 38,900
 Dividends payable 18,800 15,000
Salaries payable 7,900 14,600
Mortgage note payable, due 2019 120,000 -
Bonds payable - 70,000
Common stock, Rs.10 par 410,000 360,000
Paid-in capital in excess of par—common stock 65,000 45,000
Retained earnings 251,300 215,600
900,200 759,100

An examination of the income statement and the accounting records revealed the
following additional information applicable to 2014:
a. Net income, Rs.63,200
b. Depreciation expense reported on the income statement: buildings, Rs.13,500;
machinery and equipment, Rs.11,700.
c. Patent amortization reported on the income statement, Rs.7,500.
d. A building was constructed for Rs.163,800.
e. A mortgage note for Rs.120,000 was issued for cash.
f. 5,000 shares of common stock were issued at 14 in exchange for the bonds
payable.
g. Cash dividends declared Rs.27,500.
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows
from operating activities.

Q.4 The comparative balance sheet of C. C. Conley Inc. for December 31, 2013 and 2012
is as follows:
Dec 31,2013 Dec 31,2012
Assets
Cash Rs. 70,000 Rs. 50,500
Trade receivables (net) 88,000 80,000
Inventories 105,900 91,400
Investments - 50,000
Land 50,000 -
Equipment 375,000 275,000
Accumulated depreciation (149,000) (114,000)
541,900 432,900
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) 59,000 57,000
Accrued expenses 5,000 7,000
Dividends payable 15,000 10,000
Common stock, Rs.40 par 320,000 250,000
Paid-in capital in excess of par—common stock 17,000 12,000
Retained earnings 125,900 96,900
541,900 432,900
The income statement for the year ended December 31, 2013 is as follows:
 Sales Rs.919,500
Cost of merchandise sold 550,000
Gross profit 369,500
Operating expenses:
Depreciation expense Rs. 35,000
Other operating expenses 260,000
Total operating expenses 295,000
Operating income 74,500
Other income:
Gain on sale of investments 10,000
Income before income tax 84,500
Income tax 20,000
Net income 64,500
The following additional information was taken from Conley's records:
a) The investments were sold for Rs.60,000 cash at the beginning of the year.
b) Equipment and land were acquired for cash.
c) There were no disposals of equipment during the year.
d) The common stock was issued for cash.
e) There was a Rs.35,500 debit to Retained Earnings for cash dividends declared
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows
from operating activities.

Q.5 The comparative balance sheet of C Ltd. for June 30, 2014 and 2013 is as follows:
June 30,2014 June 30,2013
Assets
Cash Rs. 82,000 Rs. 64,800
Trade receivables (net) 104,800 91,000
Inventories 127,200 108,900
Investments - 90,000
Land 102,000 -
Equipment 425,700 329,700
Accumulated depreciation (171,800) (135,800)
670,100 548,600
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) 70,900 63,000
Accrued expenses 6,100 5,000
Dividends payable 14,400 12,000
Common stock, Rs.40 par 360,000 300,000
Paid-in capital in excess of par—common stock 31,400 19,400
Retained earnings 187,300 149,200
670,100 548,600
The income statement for the year ended June 30, 2014 is as follows:
Sales Rs.1,194,000
Cost of merchandise sold 708900
 Gross profit 485100
Operating expenses:
Depreciation expense Rs. 36,000
Other operating expenses 336,000
Total operating expenses 372,000
Operating income 113,100
Other income:
Gain on sale of investments 8,000
Income before income tax 121,100
Income tax 32,600
Net income 88,500
The following additional information was taken from the records of C Limited:
a) Equipment and land were acquired for cash.
b) There were no disposals of equipment during the year.
c) The investments were sold for Rs.98,000.
d) The common stock was issued for cash.
e) There was a Rs.50,400 debit to Retained Earnings for cash dividends declared.
Instructions
Prepare a statement of cash flows, using the direct method of presenting cash flows
from operating activities.