ms-04 mba assignment july dec 2010 Question3

3. (a)Statement of Changes in Working capital

    (b) Funds flow statement

SCHEDULE OF CHANGES IN WORKING CAPITAL

Particulars	Changes
	Increase	Decrease
Current Assets: Cash and Bank balance Stock Book Debts Current Liabilities:  Sundry Creditors Net increase in Working Capital	5,000   40,000   30,000 75,000   60,000	15,000    15,000

FUNDS FLOW STATEMENT

Particulars	Amount(Rs.)
Sources: Issue of shares Sales of Land Operating Profit Application: Redemption of shares Purchase of Plant Investment Purchased Tax Paid Interim Dividend Paid Sources - Application		1,00,000 80,000 1,90,000 1,10,000 1,15,000     10,000     45,000     30,000 60,000

Funds from operation:

P&L account balance as on 31^st December 2001          45,000

ADD:

Transfer to General Reserve                                           20,000

Goodwill Written off                                                     10,000

Depreciation                                                                 15,000

Interim Dividend                                                            30,000

Income Tax Paid                                                          45,000

Preliminary expenses                                                     10,000

Provision for Tax (45000 + 45000 – 40000)               50,000

Proposed Dividend (60,000+30,000 -60,000)             30,000

LESS:

P& L Account balance on 31st December 2000           30,000

Capital Reserve(Profit on sale)                          30,000