Question 4 (Rusia Pic) 2018 000 897 714 1.611 Statements of financial position as at 31 December 2019 2019 2019 2018 000 000 000 Non-current assets Property, plant and equipment 825 637 Goodwill 100 100 Development expenditure 290 160 1,215 Current assets Inventories 360 227 Trade receivables 274 324 Investments 143 46 Cash 29 117 806 2.021 Equity Share capital - 1 ordinary shares 400 Share premium 350 100 Revaluation surplus 152 60 Retained earnings 237 255 1,239 Non-current liabilities 6% debentures 150 100 Lease liabilities 100 80 Deferred tax 45 298 Current liabilities Trade payables 274 352 Finance lease liabilities 17 12 Current tax 56 153 Debenture interest 5 Bank overdraft 132 54 484 2.021 500 815 48 225 571 1.611 BUSI2150-E1 7 BUSI2150-E1 Statement of Profit or Loss and Other Comprehensive for the year ended 31 December 2019 Turnover Cost of goods sold Gross Profit Operating expenses Operating profits Finance charges Profits before taxes Taxes Net profit attributable to shareholders Other Comprehensive income Gain on PPE Total Comprehensive income 000 1,476 (962) 514 (157) 357 (15) 342 (162) 180 100 280 Other information 1. Goodwill arose on the acquisition of unincorporated businesses. During 2019 expenditure on development projects totaled 190,000. 2. During 2019 items of property, plant and equipment with a net book value of 103,000 were sold for 110,000. Depreciation charged in the year on property, plant and equipment totaled 57,000. Rusia Plc purchased 56,000 of property, plant and equipment by means of finance leases, payments being made in arrears on the last day of each accounting period. 3 The current asset investments are government bonds and management has decided to class them as cash equivalents. 4 The new debentures were issued on 1 April 2018. Finance cost includes debenture interest and finance charges on lease. Required: a. Prepare the Statement of Cash Flows in accordance with IAS 7 for the year ended 31 December 2019 using the indirect method for Rusia Plc. Question 4 (Rusia Pic) 2018 000 897 714 1.611 Statements of financial position as at 31 December 2019 2019 2019 2018 000 000 000 Non-current assets Property, plant and equipment 825 637 Goodwill 100 100 Development expenditure 290 160 1,215 Current assets Inventories 360 227 Trade receivables 274 324 Investments 143 46 Cash 29 117 806 2.021 Equity Share capital - 1 ordinary shares 400 Share premium 350 100 Revaluation surplus 152 60 Retained earnings 237 255 1,239 Non-current liabilities 6% debentures 150 100 Lease liabilities 100 80 Deferred tax 45 298 Current liabilities Trade payables 274 352 Finance lease liabilities 17 12 Current tax 56 153 Debenture interest 5 Bank overdraft 132 54 484 2.021 500 815 48 225 571 1.611 BUSI2150-E1 7 BUSI2150-E1 Statement of Profit or Loss and Other Comprehensive for the year ended 31 December 2019 Turnover Cost of goods sold Gross Profit Operating expenses Operating profits Finance charges Profits before taxes Taxes Net profit attributable to shareholders Other Comprehensive income Gain on PPE Total Comprehensive income 000 1,476 (962) 514 (157) 357 (15) 342 (162) 180 100 280 Other information 1. Goodwill arose on the acquisition of unincorporated businesses. During 2019 expenditure on development projects totaled 190,000. 2. During 2019 items of property, plant and equipment with a net book value of 103,000 were sold for 110,000. Depreciation charged in the year on property, plant and equipment totaled 57,000. Rusia Plc purchased 56,000 of property, plant and equipment by means of finance leases, payments being made in arrears on the last day of each accounting period. 3 The current asset investments are government bonds and management has decided to class them as cash equivalents. 4 The new debentures were issued on 1 April 2018. Finance cost includes debenture interest and finance charges on lease. Required: a. Prepare the Statement of Cash Flows in accordance with IAS 7 for the year ended 31 December 2019 using the indirect method for Rusia Plc