QUESTION 2

The Greene Corp. produced the following data accompanying its financial data for 2022;

a. Equipment costing 10,000 with a book value of 8,000 was sold for 15,000

b. Motor vehicle costing 40,000 with depreciation of 16,000 was sold at a loss of 5,500

c. The building was revalued during the year.

d. No dividend was paid during the year.

BALANCE SHEET AS AT DECEMBER 31,
	2021				2022
	$	$	$		$	$	$
Non-Current Assest	COST	DEPN	NBV		COST	DEPN	NBV
Goodwill			70,000				35,000
Building	300,000		300,000		375,000		375,000
Equipment	250,000	25,000	225,000		310,000	38,500	271,500
Motor Vehicle	150,000	15,000	135,000		180,000	27,000	153,000
	700,000	40,000	730,000		865,000	65,500	834,500
Current Liabilities
Stock		22,000				35,000
Short Term Investment	40,000				25,000
Debtors		8,000				15,000
Bank		0				22,500
Cash		12,000	82,000			6,000	103,500
			812,000				938,000
EQUITY & LIABILITIES
Capital & Reserves
Share Capital ( $1 Ord Shares)		275,000				275,000
Share Premium		22,500				22,500
Reval Reserve		0				50,000
General Reserves		25,500				25,500
Retained Earnings		140,500	463,500			80,750	453,750
Non-Current Liabilities
10% Debenture			297,500				410,750
Current Liabilities
Creditors		17,000				22,000
Interest		10,000				26,500
Tax Payable		14,000				0
Accounts Payable		10,000	51,000			25,000	73,500
			812,000				938,000

Required: (a) Prepare the cash flow statement for the year ended 2022. (25 marks)

1. Comment on the performance and financial position of the company, using

relevant items in the cash flow statement. (5 marks)