Financial Reporting

Below are the statements of financial position of Dickson Co as at 31 March 20x6 and 31 March 20x5, together with the statement of profit or loss and other comprehensive income for the year ended 31 March 20x6. STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 20X6 20X5 $'000 $'000 Non-current assets Property, plant and equipment 825 637 Goodwill 100 100 Development expenditure 290 160 1,215 897 Current assets Inventories 360 227 Trade receivables 274 324 Investments 143 46 Cash 29 117 806 714 Total assets 2,021 1,611 Equity Share capital $1 ordinary shares 500 400 Share premium 350 100 Revaluation surplus 160 60 Retained earnings 151 152 1,161 712 Non-current liabilities 6% loan notes 150 100 Finance lease liabilities 100 80 Deferred tax 48 45 298 225 Current liabilities Trade payables 274 Finance lease liabilities 17 12 Current tax 56 153 Loan note interest Dividends 78 103 Bank overdraft 132 54 562 674 Total equity and liabilities 2,021 1,611 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 20X6 $'000 Revenue 1,476 Cost of sales (962) Gross profit 514 Other expenses (157) Finance costs (15) Profit before tax 342 Income tax expense (162) Profit for the year 180 352 (1) Notes Goodwill arose on the acquisition of unincorporated businesses. During the year ended 31 March 20X6 expenditure on development projects totalled $190,000. (2) During the year ended 31 March 20x6 items of property, plant and equipment with a carrying value of $103,000 were sold for $110,000. Depreciation charged in the year on property, plant and equipment totalled $57,000. Dickson purchased $56,000 of property, plant and equipment by means of finance leases, payments being made in arrears on the last day of each accounting period. (3) The current asset investments are government bonds and management has decided to class them as cash equivalents. The new loan notes were issued on 1 April 20X5. Finance cost includes loan note interest and finance lease finance charges only. (5) During the year Dickson made a 1 for 8 bonus issue capitalising its retained eamings followed by a rights issue. Dividends declared during the period totalled $131,000. Required Prepare a statement of cash flows for the year ended 31 March 20x6 for Dickson Co in accordance with IAS 7 Statement of cash flows, using the indirect method. Your answer should include notes for Property, plant and equipment and for Cash and cash equivalents. (15 marks) (4) (6)