The following information relates to the draft financial statements of Samanpa Ltd. Summarised statement of financial...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information relates to the draft financial statements of Samanpa Ltd. Summarised statement of financial position as at: 31/12/2017 31/12/2016 GHS'000 GHS'000 ASSETS Non-current assets Property, plant & equipment (note 1) 19,000 25,500 Current assets 4,600 2,000 nil Inventory 12,500 Trade receivables 4,500 500 Tax refund due 1,500 33,600 Bank nil 36,500 Total assets EQUITY AND LIABILITY Equity Equity shares of GHS1 each (note i) Share deals (note ii) Retained eearnings 10,000 3,200 8,000 4,000 4,500 17,700 6,300 18,300 Non-current liabilities 10% loan note (note iii) Finance lease obligation Defferred tax provision nil 5,000 4,800 1,200 2,000 800 Current liabilities 10% loan note (note iii) 5,000 nil nil Tax 2,500 Finance lease obligation Bank overdraft 800 1,700 1,400 4,700 36,500 nil Trade payables Total equity and liabilities 4,200 33,600 Summarised income statement for the year ended: 31/12/2017 31/12/2016 GHS'000 GHS'000 40,000 (25,000) 15,000 (6,000) (600) 8,400 Revenue 55,000 Cost of sales (43,800) Gross profit Operating expenses Finance cost (note iv) Profit (loss) before tax Income tax relief (expense) Profit (loss) for the year 11,200 (12,000) (1,000) (1,800) (2,800) 5,600 700 (1,100) The following additional information is available: (i) Property, plant & equipment is made up of: 31/12/2017 GHS'000 31/12/2016 GHS'000 nil Property Leased plant 8,800 2,500 6,500 Plant 12,500 19,000 14,200 25,500 During the year, Samanpa sold its property for GHS8.5m and entered into an arrangement to rent it back from the purchaser. There was nither disposal nor addition to owned plant. The depreciation charges (to cost of sales) for the year ended 31/12/2017 were: GHS'000 Property (before disposal) Leased plant Owned plant 200 1,800 1,700 3,700 (ii) On 01/04/2017 there was a bonus issue of shares of one new share for every 10 held, credited at GHS1 per share (utilizing share deals bbalance). On 01/07/2017, there was a fully subscribed cash issue of shares at GHS1 per share. (iii) The 10% loan note is due for repayment on 31/03/2018. Samanpa is in negotiations with the loan provider to refinance the same amount for another five years. (iv) The finance costs are made up of: 31/12/2017 31/12/2016 GHS'000 GHS'000 Finance charge on lease 300 100 Overdraft interest 200 nil Loan note interest 500 500 1,000 600 Required: (i) Prepare a statement of cash flows for Samanpa Ltd for year ended 31/12/2017 in accordance with IAS 7 Statemnent of cash flows (ii) Based on the information available, advise the loan provider on the matters you would take into consideration when deciding whether to grant Samanpa a renewal of its maturing loan note. The following information relates to the draft financial statements of Samanpa Ltd. Summarised statement of financial position as at: 31/12/2017 31/12/2016 GHS'000 GHS'000 ASSETS Non-current assets Property, plant & equipment (note 1) 19,000 25,500 Current assets 4,600 2,000 nil Inventory 12,500 Trade receivables 4,500 500 Tax refund due 1,500 33,600 Bank nil 36,500 Total assets EQUITY AND LIABILITY Equity Equity shares of GHS1 each (note i) Share deals (note ii) Retained eearnings 10,000 3,200 8,000 4,000 4,500 17,700 6,300 18,300 Non-current liabilities 10% loan note (note iii) Finance lease obligation Defferred tax provision nil 5,000 4,800 1,200 2,000 800 Current liabilities 10% loan note (note iii) 5,000 nil nil Tax 2,500 Finance lease obligation Bank overdraft 800 1,700 1,400 4,700 36,500 nil Trade payables Total equity and liabilities 4,200 33,600 Summarised income statement for the year ended: 31/12/2017 31/12/2016 GHS'000 GHS'000 40,000 (25,000) 15,000 (6,000) (600) 8,400 Revenue 55,000 Cost of sales (43,800) Gross profit Operating expenses Finance cost (note iv) Profit (loss) before tax Income tax relief (expense) Profit (loss) for the year 11,200 (12,000) (1,000) (1,800) (2,800) 5,600 700 (1,100) The following additional information is available: (i) Property, plant & equipment is made up of: 31/12/2017 GHS'000 31/12/2016 GHS'000 nil Property Leased plant 8,800 2,500 6,500 Plant 12,500 19,000 14,200 25,500 During the year, Samanpa sold its property for GHS8.5m and entered into an arrangement to rent it back from the purchaser. There was nither disposal nor addition to owned plant. The depreciation charges (to cost of sales) for the year ended 31/12/2017 were: GHS'000 Property (before disposal) Leased plant Owned plant 200 1,800 1,700 3,700 (ii) On 01/04/2017 there was a bonus issue of shares of one new share for every 10 held, credited at GHS1 per share (utilizing share deals bbalance). On 01/07/2017, there was a fully subscribed cash issue of shares at GHS1 per share. (iii) The 10% loan note is due for repayment on 31/03/2018. Samanpa is in negotiations with the loan provider to refinance the same amount for another five years. (iv) The finance costs are made up of: 31/12/2017 31/12/2016 GHS'000 GHS'000 Finance charge on lease 300 100 Overdraft interest 200 nil Loan note interest 500 500 1,000 600 Required: (i) Prepare a statement of cash flows for Samanpa Ltd for year ended 31/12/2017 in accordance with IAS 7 Statemnent of cash flows (ii) Based on the information available, advise the loan provider on the matters you would take into consideration when deciding whether to grant Samanpa a renewal of its maturing loan note.
Expert Answer:
Answer rating: 100% (QA)
C ash Flow Statement of Sampanna Limited as at 31 st December 2017 OPERTING ACTIVITIES GHS000 Cash Received from Customers 52500 Cash paid to Suppliers 51200 Cash Paid against Operative Expenses 7800 ... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The following information relates to two companies, designated Company A and Company B. One of the companies is a traditional steel manufacturer. The other is a successful Internet retailer. Using...
-
The following information relates to Helena Limited: Required: Calculate the following accounting ratios for each of the five years from 30 April 2008 to 2012 inclusive: (a) Gross profit (b) Mark-up...
-
The following information relates to the Plus Factors Group plc for the years to 30 September 20X8 and 20X9: Ordinary dividends were declared as follows: Interim 1.12 pence per share (20X8, l.67p)...
-
Use the search feature on your favorite business news site on the Web (e.g., CNN, Bloomberg, or Fox News) and search for news on partnerships, LLCs, or limited partnerships. What entities did you...
-
Now look at the entire population of salaries, which you cant usually do in real life. a. Find the population mean and standard deviation, and compare them to the sample estimates from the previous...
-
Cedar Appliance Sales and Service Ltd. owns several retail and service centres in northern British Columbia. Financial ratios for the company for the years ended December 31, 2024 and 2023, are...
-
In 2020, Cardinals Company operated at a tax loss, totaling \(\$ 88,000\) during its first year of business. Assuming a tax rate of \(25 \%\), and that income is expected in 2021 , record the entry...
-
Goldstein Semiconductors experienced the following activity in its Photolithography Department during December. Materials are added at the beginning of the photolithography process. Units: Work in...
-
ACC102 ACC200 - ( Spring 2021 Question 10 QU IKEA Furniture, sells floor spotlight for $15. The unit variable cost per spotlight is $12. Fixed costs total $4800. Calculate the Not yet margin of...
-
If the Bowie plant is sold, those operations will need to shift to the main Largo facility. The CEO is proposing to acquire robotics-based sorting and distribution equipment to facilitate more...
-
In 1943, psychologist Abraham Maslow wrote a paper, "A Theory of Human Motivation," which explained how drive and motivation are correlated to the understanding of human needs and behavior. Maslow's...
-
The position of a particle moving along a coordinate line is s = 37+4t, with s in meters and t in seconds. Find the rate of change of the particle's position at t = 3 sec. The rate of change of the...
-
Use the trial balance below to accomplish the following requirements: 1. Prepare a Comparative Statement of Comprehensive Income (2022 and 2021) 3. Make a horizontal analysis current year (2020)...
-
C) Enter the expression w +5w +1:
-
Find the arclength of the curve r(t) = (-2 sint, 5t, -2 cost), -2t2
-
Problem 4 A thin, flexible, unstretchable loop of string has mass per length . It is set spinning with angular frequency 2 in a gravitationless vacuum in such a way that it forms a stable circle of...
-
If a tax is imposed on a good where both supply and demand aresomewhat elastic, but demand is more elastic than supply, theburden of the tax will be borne a. by producers alone. b. by consumers and...
-
Funds are separate fiscal and accounting entities, each with its own self-balancing set of accounts. The newly established Society for Ethical Teachings maintains two funds-a general fund for...
-
(a) When accounting for finance leases, accountants prefer to overlook legal form in favour of commercial substance. Required: Discuss the above statement in the light of the requirements of IAS 17...
-
Mr. Norman set up a new business on 1 January 20X8. He invested 50,000 in the new business on that date. The following information is available. 1. Gross profit was 20% of sales. Monthly sales were...
-
The following is the statement of financial position of Alpha Ltd as on 30 June 20X8: The following information is relevant: 1. There are contingent liabilities in respect of (i) A guarantee given to...
-
A superball is dropped from a 2.00 m height. After it rebounds, it reaches a new height of 1.65 m. Assuming a constant coefficient of restitution, find the (ideal) total distance the ball will travel...
-
Here are some telescoping series problems: a. Verify that \[\sum_{n=1}^{\infty} \frac{1}{(n+2)(n+1)}=\sum_{n=1}^{\infty}\left(\frac{n+1}{n+2}-\frac{n}{n+1} ight)\] b. Find the \(n\)th partial sum of...
-
Determine the radius and interval of convergence of the following infinite series: a. \(\sum_{n=1}^{\infty}(-1)^{n} \frac{(x-1)^{n}}{n}\). b. \(\sum_{n=1}^{\infty} \frac{x^{n}}{2^{n} n!}\). c....
Study smarter with the SolutionInn App