Question 2

Extracts of the financial statements of Renior plc are show on the left.

Requirements

1. Prepare the Net cash flow from operating activities section of Renoir plcs Statement of cash flows for the year ended 30^th June 2020. (9 marks)* *(This includes 1 mark available for correct title and format.)

2. Calculate the cash spent on property, plant and equipment for the year ended 30^th June 2020, assuming the sale proceeds of the disposal in the Statement of profit or loss were 9,000. (4 marks)

3. Prepare the Net cash flow from financing activities section of the Statement of cash flows for the year ended 30^th June 2020. (4 marks)

Renoir plc Extracts from financial statements for the year ended 30th June 2020 Statement of financial position as at 30 June 2020 2020 2019 f f Non-current assets Property, plant and equipment 1,348,222 980,027 Current assets Inventory 86,394 52,443 Trade receivables 63,067 57,778 Bank 13,859 10,934 163,320 121,155 Total assets 1,511,542 1,101,182 Equity Share capital Share premium Revaluation reserve Retained earnings 400,000 300,000 100,000 50,000 165,000 55,000 548,572 408,012 1,213,572 813,012 132,000 154,000 Non-current liabilities Bank loan Current liabilities Trade payables Income tax Redundancy Provision 44,523 53,900 76,447 70,270 45,000 10,000 1,511,542 1,101,182 Statement of profit or loss for the year ended 30 June 2020 Revenue 3,765,836 Cost of sales and operating expenses (3,427,545) Operating profit 338,291 Loss on disposal of PPE (15,500) Finance costs 19,500) Profit before tak 313,291 Income tax (80,514) Profit for the year 232,777 Depreciation included in Operating profit 96,220