20.6 The following information has been extracted from the financial statements of Bennett and Grange Ltd for
Question:
20.6 The following information has been extracted from the financial statements of Bennett and Grange Ltd for the years ended 31.12.X6 and 31.12.X5.
Balance sheets 31.12.X5 31.12.X6
£000
£000
£000
£000 Fixed assets Land and buildings 1,100 1,100 Fixtures and fittings 380 700 1,480 1,800 Current assets Stock 500 520 Debtors 300 280 Bank _3 205 800 1,005 Current liabilities Bank overdraft 200 Creditors 100 110 Corporation tax 180 220 Proposed dividend 100 125 Net current assets 220 550 1,700 2,350 Share capital and reserves Ordinary share capital 1,500 2,000 Share premium account
—
100 Profit and loss account 200 250 1,700 2,350 Profit and loss account for the year ended 31.12.X6 £000 £000 Trading profit 650 Depreciation 300 350 Profit on sale of fixed assets 25 Profit before tax 375 Corporation tax 150 Profit after tax 225 Dividends: Paid 50 Proposed 125 175 50 Fixed assets schedule Land and Fixtures and buildings fittings £000 £000 Cost at 1.1.X6 1,100 1,900 Additions —
720 1,100 2,620 Less: Disposals 800 Cost at 31.12.X6 1,100 1,820 Depreciation at 1.1.X6 1,520 Charge for the year 300 1,820 Less: Depreciation provided on disposals 700 Depreciation at 31.12.X6 1,120 Required:
Prepare a cash flow statement for Bennett and Grange Ltd for the year ended 31.12.X6.
Step by Step Answer:
Principles Of Financial Accounting
ISBN: 9780273676300
3rd Edition
Authors: Ian Gillespie, Richard Lewis, Kay Hamilton