Question
The Following are extracts from the financial statements of Wewe Ltd. As at 31 st March: 2018 2017 Shs 000 Shs 000 Shs 000 Shs
The Following are extracts from the financial statements of Wewe Ltd. As at 31st March:
2018 | 2017 | ||
Shs ‘000’ | Shs ‘000’ | Shs ‘000’ | Shs ‘000’ |
Fixed assets: | 2,800 | 2,900 | |
Goodwill | 16,800 | 12,000 | |
Freehold Land & building | 5,860 | 6,350 | |
Plant & Machinery (NBV) | 3,600 | 3,750 | |
Investment at cost | 29,060 | 25,000 | |
Current Assets: | 10,050 | 8,700 | |
Stock | 6,140 | 7,800 | |
Accounts receivable | 1,710 | 840 | |
Investment | 200 | 430 | |
Cash at hand & bank | 18,100 | 17,770 | |
Current Liabilities: | (2,390) | (6,540) | |
Bank overdraft | (5,850) | (5,250) | |
Account Payable | (450) | (380) | |
Proposed dividends | (820) | (600) | |
Taxation | (9,510) | (12,770) | |
8,590 | 5,000 | ||
Net current assets | 37,650 | 3,000 | |
15% Debentures | (7,500) | (9,000) | |
30,150 | 21,00 | ||
Capital and Reserves: | |||
Authorized, issued & paid Sh. 10 | 18,000 | 15,000 | |
Ordinary shares | 1,500 | 750 | |
Share premium | 4,500 | - | |
Revaluation reserve | 6,150 | 5,250 | |
Retained Profit | 30,150 | 21,000 |
The profit and loss appropriation account for the year ended 31 March 2018 is given below:
Shs. ‘000’ | Shs. ‘000’ | |
Net profit before tax | 2,400 | |
Less: Corporation tax | 900 | |
Profit after tax | 1,500 | |
Dividends: | ||
Interim (Paid) | 150 | |
Proposed (Paid) | 450 | 600 |
900 |
The following additional information is provided:
- Profit for the year is arrived at after charging:
Shs. ‘000’ | |
Depreciation on plant & machinery | 1,150 |
Goodwill amortization | 420 |
- During the year, the plant with a net book value of Sh. 750,000 was sold for Sh, 1,470,000. The plant had originally cost Sh. 3,000.000.
- The investment portfolio was reduced by selling one block of shares at a profit of Sh. 160,000.
Required:
Cash flow statement in accordance with IAS 7.
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