Detail cashflow statement for the year ended 31 December 1998 as prior to example.
5:07 & + all 87% Jane Limited.pdf .. . Section B - THREE questions ONLY to be attempted 3 The balance sheets of Jane, a limited liability company, at 31 December 1997 and 1998 were as follows: Reference Year ended 31 December to notes 1997 1998 Assets $000 $000 Non-current assets Property, plant and equipment 1,100 Investments at cost N 730 100 50 830 1,150 Current assets Inventory 80 110 Trade and other receivables 1 10 180 Cash 20 30 210 320 Total assets 1.040 1,470 Equity and liabilities Capital and reserves Issued capital w 300 380 Share premium 200 300 Revaluation reserve 100 200 Accumulated profits 200 190 1,070 Non-current liabilities 10% loan notes 5 100 150 Current liabilities Trade and other payables 70 80 Bank overdraft 40 130 Proposed dividend 6 30 40 140 250 Total equity and liabilities 1.040 1,470 O A[P.T.O. Notes Property, plant and equipment During the year tangible property, plant and equipment with a net book value of $80,000 were sold for $60,000. The depreciation charge for the year on all property, plant and equipment held at the end of the year was $100,000. 2 Investments Investments which cost $50,000 were sold during the year for $40,000. 3 Issued capital Jane's issued capital at 31 December 1997 consisted of 300,000 ordinary shares of $ 1 each. Another 80.000 shares were issued during the year at a price of $2 :25 per share. Revaluation reserve jane's property was revalued upwards by $100,000 during the year. 5 10% Loan notes $50.000 of 10% loan notes were issued on | January 1998. All interest to 31 December 1998 has been paid. 6 Proposed dividends The proposed dividends are on Jane's equity share capital. No interim dividends were paid. Required: Prepare Jane's cash flow statement for the year ended 31 December 1998 complying with IAS 7 Cash Flow Statements as far as possible. Ignore taxation. (20 marks) 2 / 2S 40 0 .| 79% 5:18 pm Edit OO 33 X Sheet1 Sheet2 Sheet3 B C D E F G H J K Bracknell Lined Statement of Cash Flow for the year ended 31 December 2009 Op Hating prof TBT + Interest exp. 273,600 (add) loss on disposal 2300 [Jess ) gain on sale of investment (12,500) 10 11 gessi dividend income (3,400) (add) depreciation (12000+23,100) 35,100 12 (addj amortization expense 4 800 26300 Income tax avc 13 299,900 Back 37200 Bal b/d 14 Operating profit b4 changes in working capital Caddj decrease in accounts recables 18,500 Bal c/d 20000 Inc state. 52:200 [Jess) increase in inventory (21,000] 52 200 52200 16 (ess) increase in prepaid expenses 2,000) 17 gessi decrease in accounts payable (100,000) 18 Caddi increase in accrued liabilities 5000 1006'680 10 Income tax paid (32,200) Bonds payable ajo Dividend income 3,400 Bal bid 210000 Interest paid 1550001 Bank 30000 Net cash generated from operating activities 115,600 Bal cyd 210000 210000 340000 Cash flow from Investing activites Proceeds from sales on long tem invest 82.500 Purchase of long-term investment 20,000] Equipment disposal account Purchase of land (25,000) Equip 37500 Dopm 25300 Purchase of equipment (30,000) Loss 2300 Proceeds from sales of equipment 9500 Bank Net cash from investing activites 17/400 37500 87500 Cash flow from financing activites Equipment ajc None payable Bal bid 167230 Disposal 37500 Borrow nowe payable 30000 Bank 30000 Bal c/d 154730 26 Repayment of Morgage (20,000) 197230 197230 37 Purchase of Treasury stock (10,0001 38 Dividend paid (50.000 39 Net cash from financing activities (1 50 000) These went the Incomect direction pre Not inflow of cash & cash equivalent (16,000) $100,000 was added and $30,000 wa 41 Cash & cash equivalent at start 121,850 The $100,000 set off between the Bar 47 Cash & cash equivalent at end was a book entry - no cash was exch 13 Represented by: Cash at start 121,850 46 Cash at end 105850 47 Not change in cash (16,000) 51 52 53 54 55 56 57 61 63 65 67 DO DO Tools Mobile View Share Edit on PC <
