Financial Reporting PRACTICE QUESTION 1: Cash Flows Summary financial statements for Laertes Ltd are provided below. Income Statement for the year ending 31st December 2021 Em Operating Profit 132 Interest paid (20) Interest received 5. Profit after interest 117 Taxation (35) Profit after tax 82 Statements of Financial Position (Balance Sheet) as at 31st December 2021 2021 Em 2020 Em Non-current assets Property plant and equipment (cost) 195 130 Accumulated depreciation (79) (52) Net Book Value 116 78 Investments in Companies 100 80 Total non-current assets 216 158 Current assets Inventory (stock) Trade receivables (debtors) Cash and cash equivalents Total current assets ** 26 20 23 21 43 6 92 47 Current liabilities Trade payables (creditors) 18 Interest payable 8 Tax payable 10 Total current liabilities 36 27 2777 13 Non-current liabilities Long-term loans 26 26 18 Net assets 246 160 Capital and reserves Share capital 152 120 Share premium 26 23 Retained earnings 68 17 Total Equity and Reserves 246 160 Additional information: 1. The Statement of Changes in Equity showed a dividend paid during 2021 of 31m. 2. During 2021 Company V acquired Property, Plant & Equipment costing 90m 3. During 2021 Company V sold Property, Plant & Equipment which had an original cost of 25m and NBV of 13m at the time of sale. Sales proceeds were 20m. 4. The depreciation expense for 2021 was 39m. 5. Interest received in 2021 was as shown in the summary income statement.