King Ltd. Statement of Profit or Loss for the Year Ended 31 December 2020 2020 2019 Revenue Cost of Sales Gross Profit 4,062,500 2,828,875 1,233,625 3,973,125 2,834 533 1, 138,592 Distribution Costs Administrative Expenses Finance Costs Profit Before Tax - 348,750 - 561,750 40,750 282,375 334,800 518,495 35,800 249,497 Income Tax Expense - 112,500 109,750 Profit for the Year 169,875 139,747 King Ltd. Statement of Financial Position at 31 December 2020 2020 2019 Non-Current Assets Property Plant and Equipment Intangible Assets 1,762,500 625,000 2,387,500 1,338,750 600,000 1,938,750 Curent Assets Inventories Receivables Cash and Cash Equivalents 955, 250 476,875 13,750 792,118 456,259 1,550 Total Assets 3,833,375 3,188,677 Equity and Liabilities Equity Share Capital Share Premium Reserve Retained Earnings General Reserve Revaluation Surplus 1.200.000 250,000 891, 175 100.000 200,000 2,641, 175 800,000 200,000 721,300 100,000 200,000 2,021,300 Non-Current Liabilities 10% Debenures Long Term Bank Borrowings 250,000 375,000 625,000 250,000 300,000 550,000 Current Liabilities Trade and Other Payables 6 6 month Term Loan Interest Payable Current Tax Payables 322,200 122.500 10,000 112,500 365,814 136,813 5,000 109,750 Total Equity and Liabilities 3,833,375 3,188,677 Note: - Included in Administration Casts is Depreciation of 100,000 all relating to tangible non-current assets. - No Non-Current Assets were disposed of during the reporting period. - All Sales are to customers receiving credit - All Purchases are on Credit: 2019 Credit Purchases 2020 Credit Purchases 2,114,500 2,344,725 Required: (i) Prepare a statement of cash flows for the year to 31 December 2020 using the format laid out in IASZ. (30 Marks) (ii) Comment on why the trading profit reported differs from the net cash flows for the same accounting period. (10 Marks) (iii) Draft a report (1,000 words) comparing the results for 2020 and 2019 in relation to the changes in performance and position of the business. Your report should amake use of financial ratios to support your conclusions. Your report should also reference to the Cashflow Statement, commenting on any additional information this financial statement may offer to indicate how the business is performing and why cash is so important in achieving this. (60 Marks) My na King Ltd. Statement of Profit or Loss for the Year Ended 31 December 2020 2020 2019 Revenue Cost of Sales Gross Profit 4,062,500 2,828,875 1,233,625 3,973,125 2,834 533 1, 138,592 Distribution Costs Administrative Expenses Finance Costs Profit Before Tax - 348,750 - 561,750 40,750 282,375 334,800 518,495 35,800 249,497 Income Tax Expense - 112,500 109,750 Profit for the Year 169,875 139,747 King Ltd. Statement of Financial Position at 31 December 2020 2020 2019 Non-Current Assets Property Plant and Equipment Intangible Assets 1,762,500 625,000 2,387,500 1,338,750 600,000 1,938,750 Curent Assets Inventories Receivables Cash and Cash Equivalents 955, 250 476,875 13,750 792,118 456,259 1,550 Total Assets 3,833,375 3,188,677 Equity and Liabilities Equity Share Capital Share Premium Reserve Retained Earnings General Reserve Revaluation Surplus 1.200.000 250,000 891, 175 100.000 200,000 2,641, 175 800,000 200,000 721,300 100,000 200,000 2,021,300 Non-Current Liabilities 10% Debenures Long Term Bank Borrowings 250,000 375,000 625,000 250,000 300,000 550,000 Current Liabilities Trade and Other Payables 6 6 month Term Loan Interest Payable Current Tax Payables 322,200 122.500 10,000 112,500 365,814 136,813 5,000 109,750 Total Equity and Liabilities 3,833,375 3,188,677 Note: - Included in Administration Casts is Depreciation of 100,000 all relating to tangible non-current assets. - No Non-Current Assets were disposed of during the reporting period. - All Sales are to customers receiving credit - All Purchases are on Credit: 2019 Credit Purchases 2020 Credit Purchases 2,114,500 2,344,725 Required: (i) Prepare a statement of cash flows for the year to 31 December 2020 using the format laid out in IASZ. (30 Marks) (ii) Comment on why the trading profit reported differs from the net cash flows for the same accounting period. (10 Marks) (iii) Draft a report (1,000 words) comparing the results for 2020 and 2019 in relation to the changes in performance and position of the business. Your report should amake use of financial ratios to support your conclusions. Your report should also reference to the Cashflow Statement, commenting on any additional information this financial statement may offer to indicate how the business is performing and why cash is so important in achieving this. (60 Marks) My na