Question

The balance sheet of ABC Ltd. For the year ended 31 December 2019, together with comparative...

The balance sheet of ABC Ltd. For the year ended 31 December 2019, together with comparative figures for the previous year is shown below:

2019                2018

                                                                        Sh. ‘000’         Sh.'000’

Fixed assets                                                     270                  180

Depreciation                                                    (90)                  (56)

                                                                        180                  124

Current Assets

Stock                                                               50                    42

Debtors                                                           40                    33

Cash                                                                -___                 11

                                                                        90                    86

Current Liabilities

Creditors                                                         (33)                  (24)

Taxation                                                          (19)                  (17)

Proposed dividends                                        (28)                  (26)

Bank overdraft                                                (10)                  19

                                                                                                180                  143

Presented by:

Ordinary share capital sh.1                             25                    20

Share premium                                                10                    8

Profit and loss account                                   65                    55

15% Debentures                                              80                    60

                                                                        180                  143

You are informed that:

  • There were no sales of fixed assets during the year 2019
  • The company does not pay interim dividends
  • New debentures and shares issued in 2019 were issued on January

Required

  1. Prepare a cashflow statement for the year in accordance with IAS 7.
  2. Distinguish between direct and indirect methods of preparing cash from operations.

Homework Answers

Answer #1

Solution:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are presented with the following summarized accounts of Mtwapa Ltd. which has 40,000 issued ordinary...
You are presented with the following summarized accounts of Mtwapa Ltd. which has 40,000 issued ordinary shares:                              Mtwapa Ltd.                              Income Statement for the Year                              To 28 Feb. 2012 Sh. Sales (all credit) 1,200 Cost of sales 600 Gross profit 600 Administrative expenses (500) Debenture interest payable (10) Profit on ordinary activities 90 Taxation (30) 60 Dividends (40) Retained profit for the year 20                              Mtwapa Ltd.                              Statement of Financial Position                              At 28 Feb. 2012 Sh....
Tiger Limited has profit before tax of R250 000 for the year ended 31 December 2019....
Tiger Limited has profit before tax of R250 000 for the year ended 31 December 2019. When calculating this figure, the following information was correctly accounted for: Telephone payment of R5 000 is due for 2019 but has not yet been paid (deductible for tax purposes in the current year). Unearned sales income of R18 000 received in advance in respect of 2020 (taxable in the current year). Interest income of R7 000 is receivable (taxable in the current year)....
The Statement of Financial Position for Cush Limited for the year to 30 September 2019 is...
The Statement of Financial Position for Cush Limited for the year to 30 September 2019 is as follows: Non-Current Assets: 2019 2018 Land cost 300,000 200,000 Buildings cost 450,000 400,000 Buildings Accumulated Depn (215,000) (120,000) 535,000 480,000 Current Assets Inventory 25,000 22,000 Trade Receivables 36,000 39,000 Cash & Bank 15,000 17,000 76,000 78,000 Total Assets 611,000 558,000 Equity 2019 2018 Issued Share Capital 15,000 10,000 Share Premium 80,000 10,000 Retained Earnings 359,000 387,000 454,000 407,000 Non-current liabilities Debentures 120,000 100,000...
The comparative balance sheets of Timothy, Inc., are presented for December 31, 2019, and December 31,...
The comparative balance sheets of Timothy, Inc., are presented for December 31, 2019, and December 31, 2018, (in thousands of dollars). Timothy, Inc. earned $25 thousand after taxes in 2019, incurred depreciation expense of $19 thousand, and paid common dividends of $16 thousand. Equipment costing $12 thousand was purchased during the year. 2019 2018 Cash $ 66 $ 67 Accounts receivable, net 91 86 Inventories      43      39 Current assets $ 200 $ 192 Net property, plant and equipment...
The following information is from Clover Company for the year ended 31 December 2019. Collection of...
The following information is from Clover Company for the year ended 31 December 2019. Collection of principal on long-term loan to a supplier R35 000 Acquisition of equipment for cash R10 000 Proceeds from sale of long-term investment a book value R27 000 Issuance of ordinary shares for cash R20 000 Depreciation expense R25 000 Redemption of bonds payable at carrying value R24 000 Payment of cash dividends R9 000 Net income R35 000 Purchase of land by issuing bonds...
The Comparative Balance Sheet of XYZ Inc. for December 31, 2019 and 2018 is shown as...
The Comparative Balance Sheet of XYZ Inc. for December 31, 2019 and 2018 is shown as follows: 12/31/19 12/31/18 Assets Cash $625,760 $585,920 Accounts Receivable 227,840 208,960 Inventories $641,760 $617,120 Investments 0 240,000 Land 328,000 0 Equipment 705,120 553,120 Accumulated Depreciation-equipment (166,400) (148,000) Total Assets $2,362,080 $2,057,120 Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) $424,480 $404,960 Accrued expenses payable (operating expenses) 42,240 52,640 Dividends payable 24,000 19,200 Common Stock, $4 par 150,000 100,000 Paid In Capital – common stock...
A summary of the financial statements of FB Ltd are as follows: Abstract from Income Statement/Profit...
A summary of the financial statements of FB Ltd are as follows: Abstract from Income Statement/Profit and Loss Account for the year ended 31 December 2018. £000 Operating profit 50,500 Interest payable (2,500) Profit before taxation 48,000 Taxation (12,000) Profit after taxation 36,000 Balance Sheets 2018 2018 2017 2017 £000 £000 £000 £000 Leasehold Property at cost 60,000 60,000 Accumulated depreciation (18,000) (12,000) 42,000 48,000 Machinery at cost 96,000 82,000 Accumulated depreciation (19,000) (14,000) 77,000 68,000 Current assets Inventories/stocks 25,000...
The comparative balance sheet for the ZYX Company at December 31, 2019 and 2018 is as...
The comparative balance sheet for the ZYX Company at December 31, 2019 and 2018 is as follows: 12/31/19 12/31/18 Assets: Cash $146,600 $179,800 Accounts Receivable 224,600 242,000 Merchandise Inventory 321,600 299,200 Prepaid Expenses 13,400 9,600 Equipment 655,000 537,000 Accumulated depreciation-equipment    (170,800) (132,200) Total Assets $1,190,400 $1,135,400 Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors)    $250,200 $237,600 Mortgage note payable 0 336,000 Common Stock, $10 par 74,000 24,000 Paid in Capital-common stock 470,000 320,000 Retained Earnings 396,200 217,800 Total...
The balance sheets of Jobin & Co Ltd for the years ended 2010, 2011 and 2012...
The balance sheets of Jobin & Co Ltd for the years ended 2010, 2011 and 2012 are as follows: Jobin & Co Ltd Balance sheets at 31 December                                                                                             2010              2011             2012                                                                                             K000              K000             K000 Non-current assets Plant and equipment                                                    13,200            16,110          16,410 Current assets Inventory                                                                           2,190              2,280             2,490 Trade debtors                                                                 2, 040             2,100             2,430 Short-term investments                                                 4,200               1,800            1,290 Cash at bank and in hand                                               1,920               1,650            2,160 Creditors: amounts falling due within one year Short-term loans                                                             (2,340)           ...
The Statements of Financial Position of Dream Limited for the year ended 31 December 2015 are...
The Statements of Financial Position of Dream Limited for the year ended 31 December 2015 are provided below: Dream Limited Statement of Financial Position as at 31 December: 2015 2014 $’000 $’000 Assets: Land 350 200 PPE 950 510 Accumulated depreciation (380) (240) 570 270 Cash at bank 20 - Inventories 110 200 Accounts receivable 200 180 Total 1,250 850 Liabilities: Accounts payable 160 210 Bank overdraft 0 20 Salary payable 40 20 Tax payable 80 60 Dividends Payable 50...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT