The Balance Sheet and Income Statement of a company have been given below: LiabilitiesYear IYear IIAssetsYear IYear IIEquity share capital800,0001,000,000Land and building300,000340,000Share…

The Balance Sheet and Income Statement of a company have been given below: LiabilitiesYear IYear IIAssetsYear IYear IIEquity share capital800,0001,000,000Land and building300,000340,000Share premium80,000100,000Plant and machinery500,000700,000Bank loan-200,000Inventories230,000300,000Accounts payable180,000160,000Accounts receivable220,000250,000Provision for taxation50,00060,000Provision for doubtful debts(40,000)(30,000)Profit and loss140,000280,000Cash at bank40,000240,0001,250,0001,800,0001,250,0001,800,000 ParticularsRs.Rs.Sales1,000,000Less: Cost of goods sold600,000Gross profit400,000Less: Operating expenses100,000Interest on bank loan20,000Depreciation on machinery40,000Provision for taxation60,000Loss sales of machine (Book value Rs. 60,000)40,000260,000Net income140,000 Required: Cash flow statement by using direct method (6+3+4+2=15)