Question
IAS7 - Statement of Cash Flows The Statement of Comprehensive Income of Cross Dale Limited for the year to 31st December 2019 is shown below.
IAS7 - Statement of Cash Flows The Statement of Comprehensive Income of Cross Dale Limited for the year to 31st December 2019 is shown below. The company's statement of financial position as at that date (with comparative figures for 2018) is also shown.
Required:
-
(a) Prepare the Statement of Cash Flows for Cross Dale Limited for the year to 31 December 2019 in accordance with the requirements of IAS 7 (using the indirect method).(21 marks)
-
(b) According to the requirements of IAS 7, prepare demonstrate that the use of the direct method would give the same figure for Cash generated from operations as given in your answer to (a) above, when the indirect method was applied.
Plz do both the parts
Cross Dale Limited Statement of Comprehensive Income for the year to 31st December 2019 Sales Cost of sales Gross profit Administration and distribution expenses Interest payable Dividend received Profit before tax Taxation Profit after tax 2019 '000 752 (387) 365 (225) (18) 22 144 (33) 111 Cross Dale Limited Statements of Financial Position as at 31 December 2019 and 2018 2019 2018 '000 '000 ASSETS: Non-Current Assets Property, Plants and Equipment 488 470 Investments 250 250 738 720 Current Assets Inventories Trade Receivables Cash at bank Total Assets 231 140 15 212 157 386 1,124 369 1,089 EQUITY & LIABILITIES Share capital Share premium account Retained Earnings 220 70 526 816 200 60 445 705 90 130 LIABILITIES: Non-Current Liabilities Long-term loans Current Liabilities Trade Payables Accrued interest payable Taxation Bank Overdraft Total Equity & Liabilities 176 182 3 33 55 23 254 218 1,124 1,089 The following information is also available: i. Administrative and selling expenses include employee salaries of 148,000 and equipment depreciation of 70,000. ii. There were no non-current asset disposals during the year to 31 December 2019. iii. A dividend of 30,000 was paid in December 2018Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started