Question 4 (Rusia Plc) 2018 000 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 1,215 897 Current assets Inventories Trade receivables Investments Cash 360 274 143 29 227 324 46 117 806 2.021 714 1.611 Equity Share capital - 1 ordinary shares Share premium Revaluation surplus Retained earnings 500 350 152 237 400 100 60 255 1,239 815 Non-current liabilities 6% debentures Lease liabilities Deferred tax 150 100 100 80 48 45 298 225 Current liabilities Trade payables Finance lease liabilities Current tax Debenture interest Bank overdraft 274 17 56 5 132 352 12 153 54 484 2.021 571 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 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 Plc) 2018 000 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 1,215 897 Current assets Inventories Trade receivables Investments Cash 360 274 143 29 227 324 46 117 806 2.021 714 1.611 Equity Share capital - 1 ordinary shares Share premium Revaluation surplus Retained earnings 500 350 152 237 400 100 60 255 1,239 815 Non-current liabilities 6% debentures Lease liabilities Deferred tax 150 100 100 80 48 45 298 225 Current liabilities Trade payables Finance lease liabilities Current tax Debenture interest Bank overdraft 274 17 56 5 132 352 12 153 54 484 2.021 571 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 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
