Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are the financial statement Quick Ltd. for the year ended 31 st December 2020: Quick Ltd. Income statement For year ended 31 st

The following are the financial statement Quick Ltd. for the year ended 31st December 2020:

Quick Ltd.
Income statement
For year ended 31st December 2020
$000
Revenue 1276.50
Cost of sales (907.00)
369.50
Distribution costs (62.50)
Administrative expenses (132.00)
175.00
Interest received 12.50
Interest paid (37.50)
Profit before tax 150.00
Tax (70.00)
Profit after tax 80.00

Quick Ltd.
Statement of financial position as at 31 December
2020 2019
$000 $000d
ASSETS:
Non- current assets:
Property, plant and equipment 190 152.5
Intangible assets 125 100
Investments 12.5
Current assets:
Inventories 75 51
Receivables 195 157.5
Short-term investment 25
Cash in hand 1 0.5
Total assets 611 474
Equity and liabilities:
Equity:
Share capital 100 75
Share premium 80 75
Revolution reserve 50 45.5
Retained earnings 130 90
Non-current liabilities:
Loan 85 25
Current liabilities:
Trade payables 63.5 59.5
Bank overdraft 42.5 49
Tax 60 55
Total equity and liabilities 611 474

Required:

Determine the Net cash flows from the operating activities of Quick Ltd for the year ended 31st December 2020. (Hint use the indirect approach for preparation of the statement of cash flows)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting and Auditing Research Tools and Strategies

Authors: Thomas Weirich, Thomas Pearson, Natalie Tatiana

9th edition

1119441915, 1119441919, 978-1-119-3737, 9781119373629 , 978-1119441915

More Books

Students also viewed these Accounting questions

Question

(a) What model can you fit with the original 42 experiment?

Answered: 1 week ago