INTRODUCTION TO FINANCIAL ACCOUNTING (ACC2001) TUTORIAL SHEET UNIT 5 -CASH FLOW STATEMENTS Tutorial class 1. The following financial statements were obtained from the books of Theodore for the year ending December 31, 2015 Statements of financial position as at: 2014 2015 Non-Current Assets Cost Depa NRV Cost Depn NBV Goodwill 200.000 120.000 Building 440.000 120,000 320,000 670.000 145.000 525,000 Equipment 400,000 30.000 350,000 450.000 65.000 385,000 Motor Vehicle 320,000 80.000 240.000 410.000 95.000 315.000 Long Term Investment 65.000 165,000 1.175,000 1,510,000 Current Assets Closing Stock Debtors Short Term Investment Bank Cash Total Assets 40,000 60,500 20.000 0 18,500 139,000 1.314.000 74,500 55.000 35,000 77.500 24.000 266,000 1.776,000 Capital & Reserves Share Capital General Reserves Revaluation Reserves Retained Profit 210,000 75.000 40.000 300,000 335.000 195.000 140.000 356.000 1.226,000 625,000 Non-Current Liability 10% Debenture $50,000 400,000 Current Liabilities Creditors Tax Payable Interest Owing Dividends Bank Overdraft Total Equity & Liabilities 40,000 10.000 15.000 19,000 35,000 65,000 35.000 20.000 30,000 0 139,000 1,314,000 150,000 1.776,000 Condensed statement of profit or less for 2015 Net Sales 1.600,500 Cost of Goods Sold Opening Stock add Net Purchases less Closing Stock 40.000 410,000 (74.500) (375,500) Cost 2014 Depon Cost 2015 Depn Non-Current Assets Goodwill Building Equipment Motor Vehicle Long Term Investment 440,000 120,000 400,000 50,000 320.000 80,000 NBV 200.000 320,000 350,000 240.000 63.000 1.175.000 670,000 145,000 450,000 65.000 410.000 95.000 NRV 120,000 $25,000 385,000 315,000 165,000 1.510.000 Current Assets Closing Stock Debtors Short Term Investment Bank Cash Total Assets 40.000 60,500 20 000 0 18.500 74.500 55.000 35,000 77.500 24.000 139.000 1,314,000 26,000 1,776,000 Capital & Reserves Share Capital General Reserves Revaluation Reserves Retained Profit 210,000 75,000 40.000 300,000 335,000 195.000 140,000 $56,000 1,226,000 625,000 Non-Current Liability 10% Debenture 550.000 400,000 Current Liabilities Creditors Tax Payable Interest Owing Dividends Bank Overdraft Total Equity & Liabilities 40,000 30,000 15,000 19,000 35,000 65.000 35.000 20,000 30,000 0 139,000 1,314,000 350,000 1.776,000 Condensed statement of profit or loss for 2015 Net Sales 1.600.500 Cast of Goods Sold Opening Stock add Net Purchases less Closing Stock Gross Profit Net Operating Expenses 40.000 410.000 (74500)(375.500) 1.225,000 (515.500) PBIT less Interest Profit hefore Tax less Tax PAT 709,500 (40.000) 6679.500 (213.000) 456,500 Add Retained Eaming bid Total Profit for the Year less Transfer to Reserves less Dividends Retained Earningsod 300,000 756,500 (120,000) (80.500) 200, 500) 556.000 Condensed statement of profit or loss for 2015 Net Sales 1,600,500 Cost of Goods Sold Opening Stock add Net Purchases less Closing Stock Gross Profit Net Operating Expenses PBIT less Interest Profit before Tax less Tax PAT 40,000 410,000 (74,500) (375,500) 1,225,000 (515,500) 709,500 (40,000) 669,500 (213,000) 456,500 Add Retained Eaming bid 300,000 Total Profit for the Year 756,500 less Transfer to Reserves (120,000) less Dividends (80,500) (200,500) Retained Earnings od 556,000 Additional notes: 1. During the year equipment costing $80,000 with a book value of $45,000 was sold for $60,000 2. The building was revalued during the year Required: a. Prepare the cash flow statement for the year 2015. b. Comment on the performance of the firm citing relevant items from the cash flow statement c. What other information would you find useful in your analysis? 2