Book1.xlsx

	A	B	C	E	F	G	I	J	K
1	Q#3: The balances of the accounts of Multan Cement Co. Limited at end of 1998 and 1999 are as follows:			SOLUTION 1 :			SOLUTION 2 :
2	(In Rs.)	31-Dec-98	31-Dec-97	Cashflow from operating activities:			Cashflow from operating activities:
3	Cash	90,000	150,000	Retained earning ending	75,000		Retained earning ending	75,000
4	Accounts receivable	225,000	262,500	Retained earning opening	(150,000)		Retained earning opening	(150,000)
5	Merchandise inventory	487,500	375,000			-75,000			-75,000
6	Land	112,500	---				Add: Cash dividend	15000
7	Plant & equipment	1,200,000	937,500	Non Cash expense					-60,000
8	Patents	135,000	150,000	Depreciation expense	90,000
9	(In Rs.)	2,250,000	1,875,000			90,000	Non Cash expense
10	Accumulated depreciation	390,000	300,000	Change in Workiing Capital			Depreciation expense	90,000
11	Accounts payable	232,500	112,500	Decrease in Account Recievable	37,500		Patent	-15,000
12	Dividend payable	15,000	---	Increase in Merchandise Inventory	-112,500				75,000
13	Bonds payable	37,500	---	Increase in Account Payable	120,000	45,000
14	Capital stock	1,500,000	1,312,500			60,000	Change in Workiing Capital
15	Retained earnings	75,000	150,000				Decrease in Account Recievable	37,500
16		2,250,000	1,875,000	Cashflow from Investing activities:			Increase in Merchandise Inventory	-112,500
17	Cash dividends of Rs.15,000 were declared, but not paid.			Purchase of land	-262,500		Increase in Account Payable	120,000	45,000
18	REQUIRED			Purchase of Plant and Equipment	-112,500				60,000
19	Cash Flow Statement.			Sales of Patent	15,000
20				Cashflow from Investing activities		-360,000	Cashflow from Investing activities:
21							Purchase of land	-262,500
22				Cashflow from Financing activities:			Purchase of Plant and Equipment	-112,500
23				Dividend payable	15,000		Cashflow from Investing activities		-375,000
24				Bonds payable	37,500
25				Capital stock	187,500	240,000
26				Net Cash Outflow		-60,000	Cashflow from Financing activities:
27				Cash opening		150,000	Dividend payable	15,000
28				Cash Ending		90,000	Bonds payable	37,500
29							Capital stock	187,500
30							Cash dividend	15000	255,000
31							Net Cash Outflow		-60,000
32							Cash opening		150,000
33							Cash Ending		90,000
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