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12 Rita's balance sheet for at 31/12/X1 is shown below Buildings Equipment Inventory Cash & Receivables Assets '000 '000 450 2,100 1NV Shares Reserves 1800
12 Rita's balance sheet for at 31/12/X1 is shown below Buildings Equipment Inventory Cash & Receivables Assets '000 '000 450 2,100 1NV Shares Reserves 1800 975 1.075 150 10% Loan Stock Payables 600 400 3,775 Equity & Liabilities 3,775 Not included above was a 4-year lease contract for new plant signed on 01/01/X1 requiring annual payments of 30,000 in arrears (yearly interest rates are 7.5%). a) Calculate the lease repayments schedule for the new Plant, showing interest, repayments, opening and closing liabilities. [10 marks] b) Prepare an amended balance sheet at 31/12/X1 for Rita to include the new leased plant. [10 marks] c) Contrast Finance Leases with Operating Leases [05 marks]
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