Question
AC Ltds Income Statement for the year ended 31 December 2020. $ 000 Turnover 22977 Cost of Sales (16326) Gross Profit 6651 Other Income: Rent
AC Ltds Income Statement for the year ended 31 December 2020. $ 000 Turnover 22977 Cost of Sales (16326) Gross Profit 6651 Other Income: Rent received 225 Distribution cost (1125) Administration cost (2376) Finance cost (675) Profit before Tax 2700 Taxation (1260) Profit for the year 1440 Statement of Financial Position as at 31 December ($000) 2020 2019 Non Current Assets: Property, Plant and Equipment 3420 2745 Other Intangible assets 2250 1800 Patents - 225 5670 4770 Current Assets: Inventories 1350 918 Receivables 3510 2835 Short term investments 450 - Cash in hand 18 9 5328 3762 Page 9 of 11 TOTAL ASSETS 10998 8532 Capital and reserves: Share Capital ($1 each) 1800 1350 Share Premium 1440 1350 Revaluation reserve 900 819 Retained Earnings 2340 1620 Non-Current Liabilities: Long term loan 1530 450 Current Liabilities: Trade Payables 1143 1071 Bank Overdraft 765 882 Taxation 1080 990 TOTAL EQUITY AND LIABILITIES 10998 8532 The following information is available: 1. The proceeds for the sale of patents amounted to $270,000. 2. Property, plant and equipment with an original cost of $765, 000 and a net book value of $405,000 were sold for $288,000 during the year 3. The following information relates to property, plant and equipment: 31.12.20 31.12.19 $000 $000 Cost 6480 5355 Accumulated Depreciation 3060 2610 3420 2745 4. 450,000 $1 ordinary shares were issued during the year at a premium of $0.20 per share. 5. The short-term investments are highly liquid and are close to maturity 6. Dividends of $ 720,000 were paid during the year. REQUIRED Prepare a Cash Flow Statement for the year ended 31 December 2020.
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