ZeePedia Add to Favourites   |   Contact us


Financial Statement Analysis

<<< Previous Additional Information (AI) Next >>>
 
img
Financial Statement Analysis-FIN621
VU
Lesson-14
STATEMENTS CASH FLOWS
(Continued)
Additional Information (AI) obtained from analysis of changes in the balance sheet accounts during
the current year:-
Cash & Cash equivalents at beginning of the year
Rs.40, 000
at end of the year
Rs.75, 000
Other additional information classified into the three categories i.e. Operating, Investing and
Financing Activities, was as follows:-
Additional Information relating to Operating Activities
1. Accounts Receivable increased by Rs.30, 000.
2. Accrued interest i.e. interest receivable decreased by Rs.1, 000 (Dividend revenue
recognized on cash basis & interest revenue on accrual basis).
3.
Inventory increased by Rs.10, 000 and accounts payable by Rs.15, 000.
4.
Short-term prepared expenses increased by Rs.3, 000.
5.
Accrued expenses (payable) decreased by Rs.6, 000.
6.
Depreciation for the year Rs.40, 000.
7.
Interest payable increased by Rs.7, 000.
8.
Income tax payable decreased by Rs.2, 000.
Additional Information relating to Investing Activities
1. Marketable Securities (not qualifying as cash equivalent) show debit entries of Rs.65,000 and
credit entries of Rs.44,000.
2. Notes Receivable Account shows Rs.17, 000 debit and Rs.12, 000 credits.
3. Purchase of plant assets for Rs.200,000: Cash Rs.160,000 and long-term Note Payable
Rs.40,000
4. Sale of plant assets with book value Rs.44,000
Additional Information relating to Financing Activities
1.
Borrowed Rs.45, 000 cash by issuing short-term Notes Payable.
2.
Repaid Rs.55, 000 on account of principal on Loans & Notes Payable.
3.
Issued bonds payable Rs.100, 000 cash.
4.
Issued for cash 1000 shares of Rs.10 par value at Rs.50 per share.
5.
Cash dividend paid Rs.40,000
Re-arranging Income Statement in the two categories of Operating and Investing Activities
would give the following picture of the Income Statement:
MOOSA CORPORATIAON
Income statement
For the year ended June 30, ________
Sales, other revenue and gains
Rs._____
Net sales
900,000
Dividend Revenue
3,000
54
img
Financial Statement Analysis-FIN621
VU
Interest Revenue
6,000
Gain on sales of plant assets
31,000
Total
940,000
Cost of sales, other expenses and losses
Cost of goods sold
500,000
Operating expenses
300,000
(Includes Dep of Rs. (40, 000)
Interest expenses
35,000
Income tax expenses
36,000
Loss on sale of marketable securities
4,000
Total
875,000
Net Income
65,000
55