(answer A:B:C)
NO PLAGARSIM OR COPYING OTHER ANSWERS
Oon The flowing into two brador LM the year anded 31 October 2010 Income Tester 2020 100 TYT Opening TA Pral 70 Pro BO HO 2017 BER 2 Adil Information 1. Acum 2. Durga 0.000 00 2020 2500 which had been The the 500 D SEC.000 hew 50.000 200.000 You Are Required to Use the 2020 cordance with they 18 Mart other med company. The word and the wrote the www Question 1: The following information has been extracted from the dratt financial statements of Bradford Ltd for the year ended 31 October 2020. All figures are expressed in 2000s Income statement for the year ended to 31 October 2020 Sales 106 Cost of sales Gross profit 52 Less: Expenses (12) Operating profit 80 Interest expense Interest income 3 Loss on disposal of non-current asset (9) Profit before taxation 70 Taxation (36) Profit after taxation Balance sheet as at: 31 October 2020 31 October 2010 Non-current assets 1,850 Current assets Inventory 470 165 Trade receivables 188 201 Cash at bank 220 0 Total assets 2,328 1.606 Current liabuities Bank overdraft 30 Trade payables 880 206 Non-current limbios Long-term bank loan 284 358 Equity Share capital (1) Share premium 375 178 Other reserves 483 14 Total equity and 2,528 1.606 Nability Additional information: 1. Accumulated depreciation at the start of the year amounted to 20,000, and the closing depreciation provision stood at 50,000. 2. During the financial year, there was no revaluation on the Non-current Assets. 3. Interest and Taxation balance 2020 2019 Interest 24,000 32,000 Taxation 66,000 38,000 4. Bradford Ltd has received the dividend of 78,000 and paid the dividend of 33.000 to shareholders. 5. The historical cost of the non-current asset has been sold is 54,000. Depreciation which had been charged on the assets sold in the year totalled 10,000. 6. The historical cost of the non-current assets at the start of the year was 1,550,000. The total historical cost of non-current assets on 31 October 2020 was 1,750,000 You Are Required To: a. Use the indirect method to prepare a cash flow statement for the year ending 31 October 2020 in accordance with IAS 7. (16 Marks) b. During the reporting period, Bradford Ltd purchased 6% of the ordinary shares of Edge Hill, a public limited company. The share price of Edge Hill has risen considerably over the year and the fair value of the shares at the reporting date is 9 million. Edge Hill is listed on a stock exchange, and so Bradford Lid can sell the shares quickly if it experiences short-term cash flow shortages. The finance director has included this investment at 9 million as part of cash and cash equivalents' in the statement of cash flows. Discuss this accounting treatment in accordance with IAS 7. (6 Marks) c. Briefly comment on the cash position of Bradford Ltd. (3 Marks) [Total 25 Marks] Oon The flowing into two brador LM the year anded 31 October 2010 Income Tester 2020 100 TYT Opening TA Pral 70 Pro BO HO 2017 BER 2 Adil Information 1. Acum 2. Durga 0.000 00 2020 2500 which had been The the 500 D SEC.000 hew 50.000 200.000 You Are Required to Use the 2020 cordance with they 18 Mart other med company. The word and the wrote the www Question 1: The following information has been extracted from the dratt financial statements of Bradford Ltd for the year ended 31 October 2020. All figures are expressed in 2000s Income statement for the year ended to 31 October 2020 Sales 106 Cost of sales Gross profit 52 Less: Expenses (12) Operating profit 80 Interest expense Interest income 3 Loss on disposal of non-current asset (9) Profit before taxation 70 Taxation (36) Profit after taxation Balance sheet as at: 31 October 2020 31 October 2010 Non-current assets 1,850 Current assets Inventory 470 165 Trade receivables 188 201 Cash at bank 220 0 Total assets 2,328 1.606 Current liabuities Bank overdraft 30 Trade payables 880 206 Non-current limbios Long-term bank loan 284 358 Equity Share capital (1) Share premium 375 178 Other reserves 483 14 Total equity and 2,528 1.606 Nability Additional information: 1. Accumulated depreciation at the start of the year amounted to 20,000, and the closing depreciation provision stood at 50,000. 2. During the financial year, there was no revaluation on the Non-current Assets. 3. Interest and Taxation balance 2020 2019 Interest 24,000 32,000 Taxation 66,000 38,000 4. Bradford Ltd has received the dividend of 78,000 and paid the dividend of 33.000 to shareholders. 5. The historical cost of the non-current asset has been sold is 54,000. Depreciation which had been charged on the assets sold in the year totalled 10,000. 6. The historical cost of the non-current assets at the start of the year was 1,550,000. The total historical cost of non-current assets on 31 October 2020 was 1,750,000 You Are Required To: a. Use the indirect method to prepare a cash flow statement for the year ending 31 October 2020 in accordance with IAS 7. (16 Marks) b. During the reporting period, Bradford Ltd purchased 6% of the ordinary shares of Edge Hill, a public limited company. The share price of Edge Hill has risen considerably over the year and the fair value of the shares at the reporting date is 9 million. Edge Hill is listed on a stock exchange, and so Bradford Lid can sell the shares quickly if it experiences short-term cash flow shortages. The finance director has included this investment at 9 million as part of cash and cash equivalents' in the statement of cash flows. Discuss this accounting treatment in accordance with IAS 7. (6 Marks) c. Briefly comment on the cash position of Bradford Ltd. (3 Marks) [Total 25 Marks]
