Mohali Microbrewers

Mohali Microbrewers has been operation for five years and following is the income statement for the
year ending December 31, 2016.

Income Statement of Mohali Microbrewers

For the year ending December 31, 2016

All amounts in Rs.

Revenues 90,000
Cost of goods sold (20,000)
Gross profit 70,000
Operating expenses
Wages 15,000
Rent 5,000
Depreciation 4,000 (24,000)
Operating profit 46,000
Gain on sale of assets 5,000
Interest (3,000)
Profit before tax 48,000
Tax expense (12,900)
Net Income 35,100

The balance sheets for Mohali Microbrewers for the current and prior year are provided as below.

All amounts in Rs.

Assets 31-Dec-16 31-Dec-15 Liabilities and Equity 31-Dec-16 31-Dec-15

Cash 23,000 10,000 Accounts Payable 4,000 7,000
Receivables 5,000 4,000 Accrued wages 3,000 2,000
Inventory 8,000 5,000 Total Current liabilities 7,000 9,000
Prepaid rent 2,000 3,000 Debt 30,000 20,000
Total Current assets 38,000 22,000 Total Liabilities 37,000 29,000
Equipment 50,000 45,000 Contributed capital 12,000 10,000
Accumulated (12,000) (20,000) Retained earnings 27,000 8,000
depreciation
Equipment, net 38,000 25,000 Total equity 34,000 18,000
Total Assets 76,000 47,000 Total liabilities and equity 76,000 47,000

During the year the company sold equipment with original cost of Rs.15,000 and accumulated
depreciation of Rs.12,000 for Rs.8,000 in cash. The company also paid dividends of Rs.16,100 for the
year.

Prepare a statement of cash flows for the year ending December 31, 2016.

© Shyam V. Sunder