Ask Question, Ask an Expert


Ask Basic Finance Expert

problem 1) Part A

ABC Ltd finds that its opening bank balance of Rs.180, 000 as on April 1 has been converted into an overdraft of Rs.75, 000 by the end of the year. The following information is given below:

Particulars                                           Year beginning        Year end
Fixed assets                                             750,000            1,120,000
Stock in trade                                           190,000              330,000
Sundry Debtors                                        380,000               335,000
Trade Creditors                                         270,000               350,000
Share Capital                                            250,000               300,000
Share premium                                           -                         25,000
Bills receivable                                         87,500                   95,000

Additional information:

i) The profit before depreciation and Income tax was Rs 240,000.

ii) During the Year, Income Tax to the extent of Rs 137,500 was paid.

iii) Dividend paid were final on the Capital as on April 1 at 10 % and interim at 5% on the year end Capital.


1. Prepare a Cash Flow Statement to show how the opening bank balance of Rs 180,000 has been converted into an Overdraft of Rs.75, 000 at the end of the year.

2. Why is a Cash flow Statement considered an essential component of the primary financial statements and what information is it intended to convey?

Part B

Depreciation has been described as the measure of the wearing out, consumption or other reduction in the useful economic life of a fixed asset.

(a) Give three causes of depreciation, and for each give the type of fixed asset for which that cause is suitable.

(b) What factors must be taken into account when determining amount of depreciation and its allocation between various accounting periods?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M96369

Have any Question? 

Related Questions in Basic Finance

Many economists argue that the rescue of a financial

Many economists argue that the rescue of a financial institution should protect the institution's creditors from losses but not protect its owners: they should lose their equity. Sup - porters of this idea say it reduces ...

Once we recognize that product differentiation is the basis

"Once we recognize that product differentiation is the basis for much international trade, there are likely to be more winners and fewer losers in a country when the country shifts from no trade to free trade." There may ...

Students should choose firstly an industry and secondly two

Students should choose firstly an industry and secondly two (2) ASX listed companies in this same industry upon which to undertake a fundamental analysis. Fundamental Analysis seeks to identify factors that are likely to ...

Excel assignment you are going to purchase a new house

Excel Assignment You are going to purchase a new house valued at $250,000 by making the down payment of 20% and borrowing the rest as a 30-year fixed rate mortgage of 5.25%. Solve the problem by creating an Excel spreads ...

1 interest rate risk both bond bill and bond ted have 7

1. Interest Rate Risk. Both Bond Bill and Bond Ted have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has 20 years to maturity. If interest ...

For the year ended june 30 2014 northern clothing company

For the year ended June 30, 2014, Northern Clothing Company has total assets of $69,500,000, ROA of 12.07 percent, ROE of 19.31 percent, and a net profit margin of 11.58 percent. What are the company's net income and net ...

Throughout this course you will prepare a comprehensive

Throughout this course, you will prepare a comprehensive financial analysis and proposal (excluding tables, figures, and addenda) that will demonstrate your understanding of key financial concepts, strategies, and practi ...

How the fed should respond to prevailing conditions

How the Fed Should Respond to Prevailing Conditions : Consider the current economic conditions, including inflation and economic growth. Do you think the Fed should increase interest rates, reduce interest rates, or leav ...

On 120401 consider a xed-coupon bond whose features are the

On 12/04/01, consider a ?xed-coupon bond whose features are the following: face value: $1,000 coupon rate: 8% coupon frequency: semiannual maturity: 05/06/04 What are the future cash ?ows delivered by this bond?

Assignment questions- question 1 -bonza handtools ltd

Assignment Questions- Question 1 - Bonza Handtools Ltd. manufactures a popular power drill suitable for the home renovator. Financial and other data for this product for the last twelve months are as follows: Sales 20000 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate