Prepare a Statement of Cash Flows for Moaning-Myrtle Ltd for the year to 31st December

2020

Moaning-Myrtle Ltd is an engineering company based in Bath. The Finance Director has produced the following financial statements for the year ending December: 2020 '000 2019 '000 Statements of Financial Position ASSETS Non-current Assets Property Plant and Equipment Motor Vehicles 25 51 82 12 21 65 98 Current Assets Inventory Trade receivables Tax receivable Bank and cash 31 52 27 74 on 0 12 182 0 199 17 15 Capital and Reserves Ordinary share capital Ordinary Share Premium Revaluation reserves Retained earnings No ai 15 6 62 100 12 82 114 46 50 Non-current Liabilities Long-term Bank loan Current Liabilities Trade Payables and Accruals Taxation Bank overdraft 36 0 0 0 182 23 4 8 199 Statements of Comprehensive Income Sales Cost of Sales Gross profit Operating expenses Profit from operations Finance charges Profit from property sale Loss/Profit before tax Tax Loss/Profit after tax 2020 '000 123 (69) 54 (72) (18) (5) 6 (17) 5 (12) 2019 '000 99 (56) 43 (19) 24 (5) 1992 19 (6) 13 Notes to the accounts: 1. During the year the company sold one of its properties. The property had originally cost 4,000 but had been revalued to 10,000 during the year. No depreciation is charged on Property. Another property was purchased during the year. 2. The Company's policy is to depreciation Plant & Equipment at 35% per annum using the straight-line method with a zero-residual value. No depreciation is charged in the year of sale and a full year's depreciation is charged in the year of purchase. During the year Plant & Equipment with a net book value of 5,000 was disposed of for 3,000 cash. A loss of 2,000 has been included in Operating Expenses. Depreciation of plant and equipment amounting to 10,000 has been included in Operating Expenses for the 2020 financial year. 3. Motor vehicles are depreciated at 40% per annum using the reducing balance method. Motor Vehicles originally cost 100,000 and the amount of Accumulated Depreciation as at 31st December 2019 was 35,000. During the financial year 20,000 was spent on new motor vehicles. There were no disposals of motor vehicles during the year. Depreciation of motor vehicles is included as part of the operating expenses. 4. 1,000 of Interest Payable has been included in the Accruals balance on the 31 December 2020. Page 7 of 9 MN30170 5. The company received a 5,000 refund from the tax authorities (as shown on the income statement). The losses incurred during the year met the Tax requirements for the refund. 6. Dividends paid during the year amounted to 14,000