Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A statement of changes in working capital assists us in locating where such changes took place. In the first example we try to demonstrate the increase or decrease in particular items and then try to categorize them in terms of decrease and increase in working capital. As working capital is measured through subtracting current liabilities from current assets, any raise in current assets and any reduce in current liabilities demonstrates a raises in working capital. Likewise, reduce in current assets and a raise in current liabilities represent a decrease in working capital.
The statement of changes in working capital as Table no.1 explains that the raises in current assets amounted to Rs. 52 million, a main part of the increase occurring out of cash, inventory and receivable. Reduce in working capital came about mainly from the increased accounts payable, advances taken from customers and taxes payable. Total amount of reduce in working capital resulting from raise in current liabilities amounted to Rs. 25 million, hence showing a net raise in working capital of Rs. 27 million.
TOLLS INDIA LTD.
Statement of changes in Working Capital for the year ending December 31, 2000
(Rs. In Millions)
Dec. 31
2003
2002
Increase
(Decrease)
Working Capital
Increase Decrease
Current Assets
Cash
19.05
10.87
8.18
Accounts receivable
32.25
20.28
11.97
Loans and advances
42.58
33.82
8.76
Other current assets
17.20
15.93
1.27
Inventory
120.92
99.10
21.82
Total
232.00
180.00
52.00
Current Liabilities &
Provisions
Acceptances
4.74
3.02
1.72
Accounts payable
27.16
18.75
8.41
Advances against sales
26.60
6.32
Other liabilities
8.86
7.95
0.91
Interest accrued
2.64
2.00
0.64
Taxes payable
25.55
20.45
5.10
Proposed dividend
2.25
-
Bonus payable
3.40
2.35
1.05
Other provisions
3.80
2.95
0.85
105.00
80.00
25.00
127.00
100.00
27.00
Increasing Working Capital
what are the purposes of cost accounting information
i want to know the different types of costs.
Product Versus Period Costs Another way to look at manufacturing costs is to think of them as attaching to a product. In other words, goods result from the manufacturing proces
Accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent period. In several cases where
How do I calculate labour capacity ratio
It is important to have performance measures to evaluate managers as they control resources and invest in assets for the company. Describe how you could use different variances (ac
During his career in the energy industry, T-Bone McAdams has accumulated $5,000,000 in "surplus savings" that he is planning to donate to his college alma mater, Oklahoma A&M, in
Q. WILL BY MEANS OF FCA SAVE MONEY? Ans. It depends. in the end, the more departments know about what it obtain to deliver a unit of service, the more efficiently they can
Prepare a properly classified Cash Flow Statement for Sports Enterprises Ltd for the year ended 31st December 2011. Note that the Closing Cash at Bank Balance at 31st December 2011
The San Carlos Company is an electronics business with eight product lines. Income data for one of the products (XT-107) for June 2011 are as follows: Revenues, 200,000 units at av
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd