Problem 4 – Changes in Working Capital and Fund Flow Statement

This problem is about preparing a statement showing changes in working capital and fund flow statement for 1997. The information given includes the summarized balance sheets of PQR Ltd., as at 31st December 1996 and 31st December 1997, as well as additional information about the net profit for the year, the sale of machinery, and the payment of dividends.

Summary

• The net profit for the year ending 31st December 1997 was Rs.2,52,000.
• The loss on sale of machinery was Rs.2,000.
• The dividend paid during the year ended 31st December 1997 was Rs.50,000.

Questions

1. What is the net profit for the year ending 31st December 1997?
2. How much was the loss on sale of machinery?
3. How much was the dividend paid during the year ended 31st December 1997?

Answers

1. The net profit for the year ending 31st December 1997 was Rs.2,52,000.
2. The loss on sale of machinery was Rs.2,000.
3. The dividend paid during the year ended 31st December 1997 was Rs.50,000.