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This is a PYP question. Rronntanw The following supporting information is available: (i) An item of plant with a carrying amount of $240,000 was sold
This is a PYP question.
Rronntanw The following supporting information is available: (i) An item of plant with a carrying amount of $240,000 was sold at a loss of $90,000 during the year. Depreciation of $280,000 was charged (to cost of sales) for property, plant and equipment in the year ended 31 March 2018 . Perdua uses the fair value model in IAS 40 Investment Property. There were no purchases or sales of investment property during the year. (ii) The 6% loan notes were redeemed early incurring a penalty payment of $20,000 which has been charged as an administrative expense in the income statement. (iii) There was an issue of shares for cash on 1 October 2017. There were no bonus issues of shares during the year. (iv) Perdua gives a 12-month warranty on some of the products it sells. The amounts shown in current liabilities as warranty provision are an accurate assessment, based on past experience, of the amount of claims likely to be made in respect of warranties outstanding at each year end. Warranty costs are included in cost of sales. (v) A dividend of 3 cents per share was paid on 1 January 2018. Required: a) Prepare a statement of cash flows for Perdua for the year to 31 March 2018 in accordance with IAS 7 Statement of cash flows. (15 marks) b) Comment on the cash flow management of Perdua as revealed by the statement of cash flows and the info provided by the above financial statements. (10 marks) (25 marks)Step by Step Solution
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