20.4 The following information has been extracted from the financial statements of Curasco Ltd at 31 December
Question:
20.4 The following information has been extracted from the financial statements of Curasco Ltd at 31 December 20X7.
Balance sheets 31.12.X6 31.12.X7 Fixed assets
£
£
£
£
Freehold property 200,000 300,000 Plant and machinery 400,000 500,000 Less: Depreciation 200,000 250,000 200,000 250,000 400,000 550,000 Current assets Stock 500,000 900,000 Debtors 250,000 300,000 Bank 300,000 70,000 1,050,000 1,270,000 Less: Current liabilities Creditors 160,000 250,000 Taxation 80,000 90,000 Dividends 50,000 60,000 290,000 400,000 Net current assets 760,000 870,000 Total assets less current liabilities 1,160,000 1,420,000 5% Debentures 200,000
—
£960,000
£1,420,000 Ordinary share capital 700,000 1,000,000 Share premium account
-
120,000 Profit and loss account 260,000 300,000
£960,000
£1,420,000 Profit and loss account for the year ended 31 December 20X7 Trading profit 270,000 Less: Depreciation 70,000 Add: Profit on sale of fixed assets 200,000 10,000 Operating profit 210,000 Corporation tax 110,000 Profit after tax 100,000 Proposed dividend 60,000 Unappropriated profit at 1.1.X7 40,000 260,000 Unappropriated profit at 31.12.X7 £300,000 Changes in fixed assets Cost Freehold Plant & machinery As at 1.1.X7 200,000 400,000 Additions 100,000 150,000 300,000 550,000 Less: Disposals during the year -
50,000 As at 31.12.X7 £300,000 £500,000 Depreciation As at 1.1.X7 200,000 Charge for the year 70,000 Less: Depreciation provided on disposals made during the year 270,000 20,000 As at 31.12.X7 £250,000 Required:
Prepare a cash flow statement for the year ended 31 December 20X7.
Step by Step Answer:
Principles Of Financial Accounting
ISBN: 9780273676300
3rd Edition
Authors: Ian Gillespie, Richard Lewis, Kay Hamilton