Question 1 (20 marks) Panel and Door Limited (PDL) is a company incorporated and listed in Hong Kong It's principally engaging in supplies and installs insulation panels for commercial and industrial projects throughout Hong Kong In addition to sales through wholesalers,PDLalso operates directly in the retail market through dedicated showrooms As a newly appointed chief accountant toPDL, you are given the draft financial statements for the year ended 31 December 2019 are shown as follows Statement of financial position at 31 December 2019 2019 2018 $m $m ASSETS Non Current Assets Property, plant and equipment 1,967 1,810 Current Assets Inventories 301 260 Trade receivables 384 456 Cash at bank 176 86 Total current assets 861 802 Total assets 2,828 2,612 EQUITY AND LIABILITIES Ordinary shares of $1 each 1,740 1,380 Retained earnings 148 56 1,888 1,436 Non current liabilities 10 loan notes 600 876 Current liabilities Trade payables 206 192 Tax payables 78 62 Interest payables 56 46 Total current liabilities 340 300 Total liabilities 940 1,176 Total equity and liabilities 2,828 2,612 Statement of comprehensive income for the year ended 31 December 2019 $m Revenue 972 Cost of goods sold (576) Gross profit 396 Loss on disposal of plant (15) Selling and distribution costs (57) Administrative expenses (40) Profit before interest and tax 284 Finance costs (84) Operating profit before tax 200 Taxation (48) Profit for the period 152 The following events have been noted during the year Machinery, costing $96m, was sold for $37m, resulting in a loss of $15m Depreciation of $47m was charged to cost of sales for non current assets in the year ended 31 December 2019 Some 10 loan notes were redeemed at par on 31 December 2019 There was an issue of shares for cash on 1 October 2019 There were no bonus issues of shares during the year (iv) PDL paid $60m dividends to its shareholders during the year Required Prepare Statement of Cash Flows using indirectmethod for PDL for the year ended31 December2019

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Question 1 (20 marks) Panel and Door Limited (PDL) is a company incorporated and listed in Hong Kong  It's principally engaging in supplies and installs insulation panels for commercial and industrial projects throughout Hong Kong  In addition to sales through wholesalers,PDLalso operates directly in the retail market through dedicated showrooms  As a newly appointed chief accountant toPDL, you are given the draft financial statements for the year ended 31 December 2019 are shown as follows  Statement of financial position at 31 December 2019 2019 2018 $m $m ASSETS Non Current Assets Property, plant and equipment 1,967 1,810 Current Assets Inventories 301 260 Trade receivables 384 456 Cash at bank 176 86 Total current assets 861 802 Total assets 2,828 2,612 EQUITY AND LIABILITIES Ordinary shares of $1 each 1,740 1,380 Retained earnings 148 56 1,888 1,436 Non current liabilities 10  loan notes 600 876 Current liabilities Trade payables 206 192 Tax payables 78 62 Interest payables 56 46 Total current liabilities 340 300 Total liabilities 940 1,176 Total equity and liabilities 2,828 2,612 Statement of comprehensive income for the year ended 31 December 2019 $m Revenue 972 Cost of goods sold (576) Gross profit 396 Loss on disposal of plant (15) Selling and distribution costs (57) Administrative expenses (40) Profit before interest and tax 284 Finance costs (84) Operating profit before tax 200 Taxation (48) Profit for the period 152 The following events have been noted during the year  Machinery, costing $96m, was sold for $37m, resulting in a loss of $15m Depreciation of $47m was charged to cost of sales for non current assets in the year ended 31 December 2019  Some 10  loan notes were redeemed at par on 31 December 2019  There was an issue of shares for cash on 1 October 2019  There were no bonus issues of shares during the year  (iv) PDL paid $60m dividends to its shareholders during the year  Required Prepare Statement of Cash Flows using indirectmethod for PDL for the year ended31 December2019

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Question 1 (20 marks) Panel and Door Limited (PDL) is a company incorporated and listed in Hong Kong. It's principally engaging in supplies and installs

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	2019	2018
	$m	$m
ASSETS
Non-Current Assets
Property, plant and equipment	1,967	1,810

Current Assets
Inventories	301	260
Trade receivables	384	456
Cash at bank	176	86
Total current assets	861	802

Total assets	2,828	2,612

EQUITY AND LIABILITIES
Ordinary shares of $1 each	1,740	1,380
Retained earnings	148	56
	1,888	1,436
Non-current liabilities
10% loan notes	600	876

Current liabilities
Trade payables	206	192
Tax payables	78	62
Interest payables	56	46
Total current liabilities	340	300
Total liabilities	940	1,176

Total equity and liabilities	2,828	2,612

	$m
Revenue	972
Cost of goods sold	(576)
Gross profit	396
Loss on disposal of plant	(15)
Selling and distribution costs	(57)
Administrative expenses	(40)
Profit before interest and tax	284
Finance costs	(84)
Operating profit before tax	200
Taxation	(48)
Profit for the period	152