Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello I'm an accounting and finance student and I'm taking corporate accounting this semester I need help or guide to solve this question as soon

Hello I'm an accounting and finance student and I'm taking corporate accounting this semester I need help or guide to solve this question as soon as possible:

image text in transcribed
17.8 Snowdrop The following information has been extracted from the draft financial statements of Snowdrop, a limited liability company. SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 20X 20X9 $'000 $000 $000 $'000 Non-current assets 4,600 2,700 Current assets Inventory 580 500 Trade receivables 360 230 Bank 170 940 900 Total assets 5,540 3,600 Equity and liabilities Equity Ordinary share capital 3,500 2,370 Share premium 300 150 Retained earnings 1,052 470 4,852 2.990 Non-current liabilities 10% Loan note (redeemable 31 May 20x5) 100 Current liabilities Trade payables 450 365 Taxation 180 145 Bank overdraft 58 0 688 510 5,540 3,600 Additional information (a) The income statement for the year ended 31 May 20X5 shows the following. $'000 Operating profit 1,042 Interest payable (10) Profit before taxation 1,032 Taxation (180) Profit for financial year 852 During the year dividends paid were $270,000. (c) Profit before taxation had been arrived at after charging $700,000 for depreciation on non-current assets. (d) During the year non-current assets with a net book value of $200,000 were sold for $180,000. Required Prepare a statement of cash flows for Snowdrop for the year ended 31 May 20X5 in accordance with LAS 7 Statement of cash flows, using the indirect method. 83

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Managerial Accounting

Authors: Davis, Charles E., Elizabeth

1st Edition

0471699608, 978-0471699606

More Books

Students also viewed these Accounting questions

Question

1. Why do we trust one type of information more than another?

Answered: 1 week ago