Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Do this question clearly. on a copybook if possible The statement of financial position of Robert Limited at 30 June were as follows: 2018 Rs000

image text in transcribed

image text in transcribed

Do this question clearly. on a copybook if possible

The statement of financial position of Robert Limited at 30 June were as follows: 2018 Rs000 R9000 2017 Rs000 R5000 1,840 1,220 Non-current assets Equipment Current Assets Inventory Trade receivables Cash 960 1,222 158 1,018 1,138 2,340 4,180 2,156 3,376 Share capital and reserves Issued share capital Retained earnings 1,600 820 2,420 1,000 700 1,700 1,000 800 Non-current liabilities 10% loan Current Liabilities Bank overdraft Trade payables Taxation 730 30 104 748 24 760 876 3,376 4,180 Notes 1. At 30th June 2017, equipment had cost Rs1,810,000 and at 30th June 2018, equipment had cost Rs2,480,000. Amount shown in the statement of financial position are at net book values 2. During the year, equipment which had cost Rs344,000, with a net book value of Rs142,000 was sold for Rs 180,000 3 The income statement includes a tax charge of Rs28,000. Interest of Rs80,000 was paid during the year 30 June 2018 5. Dividends of Rs150,000 were paid during the year ended 30 June 2018 7 Required: (a) Showing all relevant workings, prepare a statement of cash flows for the year ended 30th June 2018 in accordance with IAS 7, using the indirect method. (20 marks) (b) Using suitable ratios, comment on the liquidity position of the business for both years. (5 marks) (c) You are told that the trade receivables collection period for 2018 was 40 days, and the gross profit markup was 30% of cost of sales, compute: (i) The trade payables payment period The gross profit margin and comment on the trade payables payment period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started