5. The Balance sheet reveals the firm's assets, liabilities and owners' equity (net worth). But the cash position of the company also forms a very prominent position in order to know the liquidity of the company. The balance sheet items in OMR) are taken from Irish Ltd. for the years 2018 and 2019 respectively: 2018 2019 Ass Equipment, Buildings and Motor vehicles 80,048 64,832 Current Assets Closing Stock 23,4401 11,584 Trade Receivables 10.2001 12.696 Bank 18,2081 7.960 Sundry debtors 10.200 12.696 ITotal Assets 142.096 109,768 Equity and Liabilities Capital and Reserves Ordinary Share Capital $6.000 40.000 Ilegal reserves 8.0001 5.600 Share Premium 8.800 5,600 Retained Earnings 20,5601 13.7921 93,3601 64,992 Non-Current Liabilities 9% Redeemable Bonds 4.2001 8,400 Current Liabilities Short term loans 14,3201 11.936 Proposed Dividend 84001 6.000 Taxation 21.816 18.440 44,536|| 36.176 Total Equity and Liabilities 142,096 109,768 Additional Information Interest paid on Redeemable bonds were RO 1560 during the year Depreciation on non-current Assets were RO 5952 The value of motor vehicle on 31 October was RO9264. It was sold for a loss of RO1120 on the same date. A. From the above Balance sheet items, you are required to calculate: a) Profit before Interest and Tax and prepare b) Cash flow statement for the year 2019 (6 marks) B. In Cash flow statement, certain items are added and certain items are deducted. From the Cash flow statement, you have prepared, comment on the reasons for adding or deducting those items. (4 marks) 6 Page 5. The Balance sheet reveals the firm's assets, liabilities and owners' equity (net worth). But the cash position of the company also forms a very prominent position in order to know the liquidity of the company. The balance sheet items in OMR) are taken from Irish Ltd. for the years 2018 and 2019 respectively: 2018 2019 Ass Equipment, Buildings and Motor vehicles 80,048 64,832 Current Assets Closing Stock 23,4401 11,584 Trade Receivables 10.2001 12.696 Bank 18,2081 7.960 Sundry debtors 10.200 12.696 ITotal Assets 142.096 109,768 Equity and Liabilities Capital and Reserves Ordinary Share Capital $6.000 40.000 Ilegal reserves 8.0001 5.600 Share Premium 8.800 5,600 Retained Earnings 20,5601 13.7921 93,3601 64,992 Non-Current Liabilities 9% Redeemable Bonds 4.2001 8,400 Current Liabilities Short term loans 14,3201 11.936 Proposed Dividend 84001 6.000 Taxation 21.816 18.440 44,536|| 36.176 Total Equity and Liabilities 142,096 109,768 Additional Information Interest paid on Redeemable bonds were RO 1560 during the year Depreciation on non-current Assets were RO 5952 The value of motor vehicle on 31 October was RO9264. It was sold for a loss of RO1120 on the same date. A. From the above Balance sheet items, you are required to calculate: a) Profit before Interest and Tax and prepare b) Cash flow statement for the year 2019 (6 marks) B. In Cash flow statement, certain items are added and certain items are deducted. From the Cash flow statement, you have prepared, comment on the reasons for adding or deducting those items. (4 marks) 6 Page
