QUESTION The statement of profit or loss of Regal Plc for the year ended 31 December 2020 is presented below The statement of financial position of Regal Plc as at 31 December 2020 is also shown '000 Revenue 1,900 Cost of sales 1,226 Gross profit 674 Distribution expenses 126 Administrative expenses 250 Operating profit 298 Finance costs 56 Profit before tax 242 Taxation 61 Profit for the year 181 Statements of financial positions as at 31 December Assets 2020 2019 Non current assets 000 000 Property, plant and equipment 810 820 Intangible assets 250 250 1,060 1,070 Current assets Inventory 212 230 Trade receivables 586 439 Cash and cash equivalents 62 80 860 749 Total assets 1,920 1,819 Capital and reserves Ordinary share capital 270 250 Share premium account 514 480 Reserves 110 110 Retained earnings 594 455 Total equity 1,488 1,295 Non current liabilities Long term loans 105 120 Current liabilities Bank overdraft 53 92 Trade payables 154 186 Interest payable 34 20 Tax payable 86 106 327 404 Total equity and liabilities 1,920 1,819 Note 1 Administrative expenses include depreciation of 81,000 Note 2 An item of property, plant and equipment was disposed of during the year Its net book value and the time of the disposal was 59,000 and the proceeds received were 70,000 Note 3 A dividend of 42,000 was paid in March 2020 Required Prepare a statement of cash flows in accordance with IAS 7 Statement of cash flows (15 marks) Discuss why a statement of cash flow is required and its usefulness to the investor (7 marks) The statement of profit or loss of Regal Ple for the your orded 31 December 2020 is presented below The statement of financial position of Regel Ple as at 31 December 2020 is also shown 000 1,900 1 220 674 126 Revenue Cost of sales Gross profit Distribution expenses Administrative expenses Operating profit Finance costs Profit before tax Taxation Profit for the year 181 Statements of financial positions as at 31 December Assets Non current assets Property, plant and equipment Intangible assets 2020 2000 810 250 2019 000 820 250 1000 070 Current assets Inventory Trade receivables Cash and cash equivalents 212 586 62 880 1,920 230 439 80 749 1019 Total assets 270 514 110 594 1 488 250 480 110 455 1295 Capital and reserves Ordinary share capital Share premium account Reserves Retained eamings Total equity Non current liabilities Long term loans Current liabilities Bank overdraft payables Interest payable Tax payablo 105 53 154 34 86 327 1 920 92 186 20 106 404 1819 Total equity and liabilities Note 1 Administrative expenses include depreciation of 81,000, Note 2 Anitom of property, plant and equipment was disposed of during the year is net book value and the time of the disposal was 59,000 and the proceeds recolved were 70,000 Note 3 A dividend of 42,000 was paid in March 2020 Required Prepare a statement of cash flows in accordance with IAS 7 Statement of cash flows (15 marks) Discuss why a statement of cash flow is required and its usefulness to the investor (7 marks)

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QUESTION The statement of profit or loss of Regal Plc for the year ended 31 December 2020 is presented below. The statement of financial position

QUESTION

The statement of profit or loss of Regal Plc for the year ended 31 December 2020 is presented below. The statement of financial position of Regal Plc as at 31 December 2020 is also shown.

'000

Revenue 1,900

Cost of sales 1,226

Gross profit 674

Distribution expenses 126

Administrative expenses 250

Operating profit 298

Finance costs 56

Profit before tax 242

Taxation 61

Profit for the year 181

Statements of financial positions as at 31 December
Assets	2020	2019
Non-current assets	000	000
Property, plant and equipment	810	820
Intangible assets	250	250
	1,060	1,070
Current assets
Inventory	212	230
Trade receivables	586	439
Cash and cash equivalents	62	80
	860	749
Total assets	1,920	1,819

Capital and reserves
Ordinary share capital	270	250
Share premium account	514	480
Reserves	110	110
Retained earnings	594	455
Total equity	1,488	1,295
Non-current liabilities
Long-term loans	105	120
Current liabilities
Bank overdraft	53	92
Trade payables	154	186
Interest payable	34	20
Tax payable	86	106
	327	404
Total equity and liabilities	1,920	1,819

Note 1 Administrative expenses include depreciation of 81,000.

Note 2 An item of property, plant and equipment was disposed of during the year. Its net book value and the time of the disposal was 59,000 and the proceeds received were 70,000.

Note 3 A dividend of 42,000 was paid in March 2020

Required:

Prepare a statement of cash flows in accordance with IAS 7 Statement of cash flows.

(15 marks)

Discuss why a statement of cash flow is required and its usefulness to the investor.

(7 marks)

The statement of profit or loss of Regal Ple for the your orded 31 December 2020 is presented below. The statement of financial position of Regel Ple as at 31 December 2020 is also shown 000 1,900 1.220 674 126 Revenue Cost of sales Gross profit Distribution expenses Administrative expenses Operating profit Finance costs Profit before tax Taxation Profit for the year 181 Statements of financial positions as at 31 December Assets Non-current assets Property, plant and equipment Intangible assets 2020 2000 810 250 2019 000 820 250 1000 070 Current assets Inventory Trade receivables Cash and cash equivalents 212 586 62 880 1,920 230 439 80 749 1019 Total assets 270 514 110 594 1.488 250 480 110 455 1295 Capital and reserves Ordinary share capital Share premium account Reserves Retained eamings Total equity Non-current liabilities Long-term loans Current liabilities Bank overdraft payables Interest payable Tax payablo 105 53 154 34 86 327 1.920 92 186 20 106 404 1819 Total equity and liabilities Note 1 Administrative expenses include depreciation of 81,000, Note 2 Anitom of property, plant and equipment was disposed of during the year is net book value and the time of the disposal was 59,000 and the proceeds recolved were 70,000 Note 3 A dividend of 42,000 was paid in March 2020 Required: Prepare a statement of cash flows in accordance with IAS 7-Statement of cash flows (15 marks) Discuss why a statement of cash flow is required and its usefulness to the investor (7 marks)