Question
Question 1* The following are the financial statements of Riddle plc for the last two years: The statements of financial position as at 31 March
Question 1* The following are the financial statements of Riddle plc for the last two years: The statements of financial position as at 31 March Non-current assets: Property, plant and equipment, at cost Less accumulated depreciation Investments Current assets: Inventory Trade receivables Bank Total assets Capital and reserves: Ordinary shares Share premium Retained earnings Non-current liabilities: 12% debentures Current liabilities: Trade payables Taxation Total equity and liabilities Interpretation Revenue Cost of sales Gross profit Distribution costs Administration expenses $000 Operating profit Interest on debentures Profit before tax Tax Profit after tax 540 (145) 315 412 48 600 40 217 139 39 20X8 $000 395 115 775 1,285 857 250 178 1,285 $000 720 (190) 418 438 51 Statement of comprehensive income for the year ended 31 March 20X9 800 55 311 166 45 $000 (124) (300) 20X9 $000 530 140 907 1,577 1,166 200 211 1,577 $000 2,460 1,780 680 (424) 256 (24) 232 (48) 184 Note: The statement of changes in equity disclosed a dividend of $90,000. Required: (a) Prepare the statement of cash flows for Riddle plc for the year ended 31 March 20X9 and show the operating cash flows using the 'indirect method'. (b) Calculate the cash generated from operations using the 'direct method'.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started