Question
You are given the following financial statement of Noname (Pty) Ltd to prepare cash flow statement. Statemen t of Comprehensive income for the year ended
You are given the following financial statement of Noname (Pty) Ltd to prepare cash flow statement.
Statement of Comprehensive income for the year ended 31 March 2021
Continuing operations | $000 |
Revenue | 77,500 |
Cost of goods sold | (54,500) |
Gross Profit | 23,000 |
|
|
Distribution costs | (8,625) |
Administration expenses | (5,500) |
Profit from operations | 8,875 |
Finance costs | (1375) |
Profit before tax | 7,500 |
Tax | (2500) |
Profit for the period from continuing operations | 5,000 |
Other comprehensive income (Note i) | 3,375 |
| 8,375 |
The Statement of Financial Position of Noname (Pty) Ltdas at 31 March 2021
| 2021 $000 | 2020 $ 000 |
Assets |
|
|
Non-Current assets | 37,500 | 26,750 |
Property, Plant and equipment | 35,000 | 26,750 |
Deferred development expenditure | 2,500 | - |
Current assets | 20,575 | 18,250 |
Inventories | 8,250 | 9,500 |
Trade and other receivables | 7,375 | 5,500 |
Cash and cash equivalents | 4,950 | 3,250 |
Total assets | 58,075 | 45,000 |
Equity and Liabilities |
|
|
Equity | 28,875 | 21,875 |
Share capital | 17,500 | 17,500 |
Share Premium | 3,375 | 0 |
Retained earnings | 8,000 | 4,375 |
Non-current liabilities | 17,450 | 14,500 |
8% loans (not iii) | 10,200 | 10,000 |
Deferred Tax | 4,250 | 2,250 |
Lease liability | 3,000 | 2,250 |
Current liabilities | 11,750 | 8,625 |
Trade and other payables | 6,750 | 5313 |
Tax liability | 3,125 | 1,812 |
Lease liability | 1,875 | 1,500 |
Total liabilities | 29,200 | 23,125 |
Total Equity and Liabilities | 58,075 | 45,000 |
Further information
a. The 8% loan notes is repayable with the effective rate of 10%. No loan notes were issued or redeemed during the year.
b. Amortisation of deferred development expenditure was $500,000 and Depreciation of property, plant and equipment was $2,250,000.
c. $62,500 was credited to administrative expenses in respect of government grants during the year.
d. Noname (Pty) Ltd acquired a plant under a lease agreement with an initial value of $3.75 million on 1 July 2020. No non-current assets were disposed during the year. Property revalued upwards by $5million and transferred $1,625,000 of the resulting revaluation surplus this created to deferred tax.
Required:
Prepare Noname (Pty) Ltds the statement of cash flows for the year ended 31 March 2021.
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