Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information is available from Chico Limited. Balance Sheet as at 30 April 1998 1999 $ $ $ $ Fixed Assets Land and buildings
The following information is available from Chico Limited.
Balance Sheet as at 30 April 1998 1999 $ $ $ $ Fixed Assets Land and buildings (at cost) 350,000 490,000Plant and Equipment Cost238,000 336,000 Less Depreciation120,000118,000134,000202,000Goodwill 154,000 77,000 622,000 769,000Current Assets Stocks245,000 350,000 Trade Debtors133,000 105,000 Expenses Prepaid30,000 30,000 Bank152,000 110,000 Cash14,000 21,000 574,000 616,000 Current Liabilities Trade Creditors77,000 119,000 Interest Accrued7,000 14,000 Proposed dividend35,000 28,000 119,000 161,000 Net working capital 455,000 455,000 1,077,000 1,224,000Financed by: Share Capital $1 ordinary shares fully paid560,000 560,000Share premium 448,000 448,000General Reserves 28,000 28,000Profit and Loss 41,000 48,00010% Debentures 1998/9 - 140,000 1,077,000 1,224,000
Additional Information:
- Plant and Equipment which originally cost $189,000 was sold for $42,000. At the date of sale, May 1998, the book value was $105,000.
- Depreciation of $98,000 was provided against plant and equipment held during the year.
- The profit and loss appropriation account for the year ended 30, April 1999 showed:
- For the year ended April,1999, $14,000 was charged to the Profit and Loss account as interest on the debenture.
Required:
- Prepare a cash flow statement for the year ended 30, April showing clearly the cash inflows and outflows for the year .
- Reconcile operating profit to net cash flow from operating activities (Show workings for profit/loss on Disposal and Additions of Fixed Assets)
- Analysis of changes in cash during the year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started