Task 3:

Prepare Cashflow Statement for ABC company from the following information. Showing your workings. (Unit: CU1000)

ABCs statement of financial position

As at March 31, 20X7

2.During the year, equipment with cost of 80,000 was purchased. Loss on sale of equipment amounted to 5,000. 3.Depreciation charged on equipment and furniture of 15,000 and 30,000 relatively. Amortisation of intangible assets is at 5% on reducing balance. 4.Bank loan 50,000 was repaid on 31 March 20X7. 5.Dividend declared and fully paid for the year 20X5-20X6 was 50,000. 6.Provision for taxation of the previous year is fully paid and all of provision for taxation of current year has not been paid. 7.During the year, the company made a 2 for 5 rights issuance.

- The answer must follow the presentation style of an answer in Financial Reporting subject (F7) of ACCA.

31 March 20X6 500,000 100,000 ABC's statement of financial position As at March 31, 20X7 ASSETS 31 March 20X7 I. Non-current assets 1. Properties, plants and equipment 500,000 2. Intangible assets 95,000 3. Non-current investments 100,000 II. Current assets 1. Inventories 130,000 2. Trade receivables 120,000 3. Cash and cash equivalents 327,000 Total assets 1,272,000 EQUITY AND LIABILITIES I. Equity 1.Share capital 700,000 2. Retained earnings 420,000 II. Non-current liabilities 1. Long-term borrowings: 10% bank loan 50,000 III. Current liabilities 1. Trade payables 45,000 2. Accrued rental 7,000 3. Provisions for taxation 50,000 Total equity and liabilities 1,272,000 50,000 80,000 205,000 935,000 500,000 250,000 100,000 50,000 5,000 30,000 935,000 Additional information: 1. Properties, plants and equipment including: 31 March 20X7 Equipment 230,000 Furniture 270,000 Total 500,000 31 March 20X6 200,000 300,000 500,000