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, 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 investments 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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