Question

From the following Balance sheet of Relax Ltd., you are required to prepare a Schedule of...

  1. From the following Balance sheet of Relax Ltd., you are required to prepare a Schedule of Changes in Working Capital and Statement and fund flow statement

Balance sheet

Liabilities

2011

2012

Assets

2011

2012

Capital

70000

75000

Cash at bank

14000

19000

Profit & loss A/c

24500

34500

Debtors

6500

9500

Creditors

9000

5000

Stock

9000

7000

Long term loans

-

5000

Furniture

24000

34000

Building

50000

50000

103500

119500

103500

119500

Homework Answers

Answer #1
Schedule of Changes in Working Capital:
2011 2012 Change
Current Assets
Cash at Bank 14000 19000 5000
Debtors 6500 9500 3000
Stock 9000 7000 -2000
29500 35500 6000
Current Laibilities
Creditors 9000 5000 -4000
Working Capital 20500 30500 10000
Funds Flow from Operations:
Net Income (34500-24500) 10000
Funds Flow from Operations 10000
Funds Flow Statement:
Sources of Funds:
Long Term Loan 5000
Issue of Capital (75000-70000) 5000
Funds From Operations 10000
20000
Application of Funds:
Increase in Working Capital 10000
Purchase of Furniture (34000-24000) 10000
20000
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