QUESTION 1 25 The following are extracts from the financial statements of ABC Ltd for the year ended 31 December 2019 ABC Ltd Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019 Revenue 280 842 Cost of Sales (100 000) Gross Profit 180 842 Interest received 4 528 Dividends received on listed investments 6 680 Profit on disposal of property, plant equipment 560 Administration expenses (64 730) Depreciation of property, plant equipment (37 280) Interest paid (19 840) Profit before tax 70 760 Taxation (27 232) Profit for the year 43 528 ABC Ltd Statement of Changes in Equity for the year ended 31 December 2019 Retained Earnings Opening balance 153 416 Profit for the year 43 528 Dividends to shareholders (23 366) Closing balance 173 578 ABC Ltd Statement of Financial Position as at 31 December 2019 2018 Assets Non current assets 536 706 442 216 Property, Plant and Equipment 501 648 417 848 Investment in listed shares 35 058 24 368 Current assets 235 750 191 962 Inventory 93 310 65 250 Trade Receivables 136 774 120 690 Bank 5 666 6 022 Total Assets 772 456 634 178 Equity and Liabilities Equity 403 176 342 236 Share Capital 31 300 31 300 Revaluation Surplus 198 298 157 520 Retained Earnings 173 578 153 416 Non current Liabilities 195 334 152 288 Long term loan 195 334 152 288 Current Liabilities 173 946 139 654 Trade Payables 90 540 72 066 Tax Payable 4 776 5 424 Dividends Payable 12 582 12 582 Short Term Loans 66 048 49 582 Total Equity and Liabilities 772 456 634 178 Additional information The short term portion of the long term loan included in the short term loans was 15 408 (2018 29 402 this was paid as planned in 2019) The proceeds from the sale of property, plant equipment amounted to 1 978 during the current year 24 000 of the purchases of property, plant equipment during the current year was for the expansion of operations Land (included in property, plant equipment) was revalued during 2019 Required Prepare the Statement of Cash Flows for ABC Ltd for the year ended 31 December 2019 Show workings clearly The Reconciliation of Profit before tax and Cash generated from operations is not required

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Posted on Sep 09, 2024

QUESTION 1 [25]

The following are extracts from the financial statements of ABC Ltd for the year ended 31 December 2019:

ABC Ltd

Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2019

Revenue	280 842
Cost of Sales	(100 000)
Gross Profit	180 842
Interest received	4 528
Dividends received on listed investments	6 680
Profit on disposal of property, plant & equipment	560
Administration expenses	(64 730)
Depreciation of property, plant & equipment	(37 280)
Interest paid	(19 840)
Profit before tax	70 760
Taxation	(27 232)
Profit for the year	43 528

ABC Ltd

Statement of Changes in Equity for the year ended 31 December 2019

ABC Ltd

Statement of Financial Position as at 31 December

	2019	2018
Assets
Non-current assets	536 706	442 216
Property, Plant and Equipment	501 648	417 848
Investment in listed shares	35 058	24 368

Current assets	235 750	191 962
Inventory	93 310	65 250
Trade Receivables	136 774	120 690
Bank	5 666	6 022
Total Assets	772 456	634 178
Equity and Liabilities
Equity	403 176	342 236
Share Capital	31 300	31 300
Revaluation Surplus	198 298	157 520
Retained Earnings	173 578	153 416

Non-current Liabilities	195 334	152 288
Long term loan	195 334	152 288
Current Liabilities	173 946	139 654
Trade Payables	90 540	72 066
Tax Payable	4 776	5 424
Dividends Payable	12 582	12 582
Short Term Loans	66 048	49 582
Total Equity and Liabilities	772 456	634 178

Additional information: -

The short-term portion of the long-term loan included in the short-term loans was

15 408 (2018: 29 402 this was paid as planned in 2019).

The proceeds from the sale of property, plant & equipment amounted to 1 978 during the current year. 24 000 of the purchases of property, plant & equipment during the current year was for the expansion of operations.

Land (included in property, plant & equipment) was revalued during 2019.

Required:

Prepare the Statement of Cash Flows for ABC Ltd for the year ended 31 December 2019.

Show workings clearly.

The Reconciliation of Profit before tax and Cash generated from operations is not required.