deciding for the Sharp Steel Pvt. Ltd. deals with manufacturing of steel products want to expandits company. Before expansion the companies wants to know the sources and utilization of funds to analyse the future expansion of the business. The company has earned Rs. 6,50,000 by selling its product. For the enhancement of business the company has taken 4,00,000 asadvance from financial institution. For uninterrupted production Rs.3,50,000 has been invested towards purchase of raw material. The company pay Rs. 5,00,000 toward salary to its employees. The company Issued shares worth Rs.4,00,000 in the market. The company has taken a place in rent to keep stock of its goods for which they are paying Rs. 1,50,000 as rent. Some old machines are sold from which the company got Rs.1,15,000. The company declares to give Rs. 2,00,000 to its share holders. Prepare a funds flow statement for till date to know the funds position and advice whether the company should go for expansion or not.

deciding for the Sharp Steel Pvt. Ltd. deals with manufacturing of steel products want to expandits company. Before expansion the companies wants to know the sources and utilization of funds to analyse the future expansion of the business. The company has earned Rs. 6,50,000 by selling its product. For the enhancement of business the company has taken 4,00,000 asadvance from financial institution. For uninterrupted production Rs.3,50,000 has been invested towards purchase of raw material. The company pay Rs. 5,00,000 toward salary to its employees. The company Issued shares worth Rs.4,00,000 in the market. The company has taken a place in rent to keep stock of its goods for which they are paying Rs. 1,50,000 as rent. Some old machines are sold from which the company got Rs.1,15,000. The company declares to give Rs. 2,00,000 to its share holders. Prepare a funds flow statement for till date to know the funds position and advice whether the company should go for expansion or not.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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