Question

El Zahabi Corp merchandise rently completed its 2015 operations. For the year, (1) all sales are problem 16GA credit sales (2) all credits to Receive reflect cash recipes from somers, ) il purchases rece n t of cash flows of c redit (4) Ace Peyheelect case forwy. (5) Other P2 P3 Exploh pa y changes The Paye wes the world pyn ofans. The comp lance sheets and income a nd EH BAHCORPORATION og 14.00 EL TAMARIPOTION incare Additional information on Year 2015 Transactions Purchased equipment for $16.000 cash 1) Indirect method sed 12.000 shares of common stock for cash per share Declared and paid $89.000 in cash dividends. 2) Investors Required Prepare a complete statement of cash flows report its cash inflows and cash outflows from operating activities wording to their had Check Cuthbone

Answer 1

	Cash Flow statement of El Zahabi Corp.
	for the yr ended 2015
	Particulars	Amount	Amount
I]	Cash flow from Operating Activities:
	Closing Retained earnings	122000
	Less: Opening Retained earnings	-75000	47000
	Add: Depriciation	54000
	Add: Dividend payable	89000
	Add: Tax provision	22000	165000
	cash from operating Activities before changes in working capital		212000
	Less: Increase in Accounts receivable	-12000
	Less: Increase in Inventory	-75000
	Add: Increase in Accounts payable	16000	-71000
	Cash flow before taxes		141000
	Less: Tax paid		-19000
	Net cash flow from operating activities (A)		122000
II]	Cash flow from Investing Activities:
	Purchase of equipments	-36000
	Net Cash outflow from Investing Activities (B)		-36000
III]	Cash flow from financing activities:
	Proceeds from Issue of equity Shares	60000
	Less: Dividend paid	-89000
	Net Cash outflow from Financing Activities   ( C )		-29000
IV]	Net Increse/(decrese) in cash flow (A+B+C)		57000
	Add: Opening Cash & Cash equivalent		107000
	Closing Cash & Cash Equivalent		164000

	W.n. 1	Equipment A/c
		Particulars	Amount	Particulars	Amount
		To Balance B/d	299000
		To Cash	36000
				By Balance C/d	335000
			335000		335000
	W.n. 2	Acc. Depriciation A/c
		Particulars	Amount	Particulars	Amount
				By Balance B/d	104000
				By P& L A/c	54000
		To Balance C/d	158000	(Depriciation for the year)
			158000		158000
	W.n 3	Equity Share Capital A/c(Common Stock )
		Particulars	Amount	Particulars	Amount
				By Balance b/d	68000
				By Cash A/c	24000
		To Balance c/d	92000
			92000		92000
	W.n. 4	Paid in Capital in Excess
		Particulars	Amount	Particulars	Amount
				By Balance b/d	160000
				By Cash A/c	36000
		To Balance c/d	196000
			196000		196000
		Income Tax Payable A/c
	W.n. 5	Particulars	Amount	Particulars	Amount
		To Cash	19000	By Balance b/d	25000
				By P& L A/c	22000
		To Balance c/d	28000
			47000		47000