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Cash flow statement I have asked this previously just now but the answer didnt match the increase in cash, so I am reposting this. :)
Cash flow statement
I have asked this previously just now but the answer didnt match the increase in cash, so I am reposting this. :)
The financial statements of Royce plc have been prepared as follows Statements of financial position as at 30 June 2012 2011 $000 $000 000 $o00 Non-current assets: Property, plant and equipment at cost 6,600 (1,680) 5,880 (1,380) Accumulated depreciation 4,920 540 420 4,500 480 300 Development costs Investments Current assets: Inventory Trade receivables Cash 1,665 1,446 1,872 1,188 3,102 3,120 9,000 8,382 Equity and reserves Ordinary shares of $1 each Share premium account Retained earnings Non-current liability: 7% debentures Current liabilities: Trade payables Taxation Dividend declared Bank overdraft 3,000 600 3,084 6,684 2,622 5,592 2,700 270 1,200 1,632 507 1,104 396 90 2,316 9,000 1,590 8,382 Further information (a)Extract from statement of income $000 1,008 36 (120) 144 780 Operating profit Dividend received Premium on Debentures Interest paid Profit before taxation Income tax Profit after tax (b) Operating expenses written off in the year include the following: Amortisation of development costs 522 $000 102 318 Depreciation of property, plant and equipment (c) Equipment which had cost $240,000 was sold in the year, incurring a loss of $156,000 (d) The debentures were redeemed at a premium of 10% Required: a. Prepare a statement of cash flows for the year ended 30 June 2012, in accordance with IAS 7 sh Flows using the indirect method. (15 marks)Step by Step Solution
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