Question 1 ABC Limited is a manufacturer of tennis equipment and fashion wear. The statement of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 ABC Limited is a manufacturer of tennis equipment and fashion wear. The statement of financial position as at June 2013 and details of expenses and revenues for the year ending 30th June are as follows: Statement of fianandal position as at 30th June 201 2013 2012 ($000) ($000) Current assets Cash Inventory Prepayments Accounts receivable Provision for doubtful debts Total current assets Non current assets Investment- associated compar Investments Land Buildings Accumulated depreciation-bui Plant and equipment Accumulated depreciation-pla Deferred tax asset Total non-current assets Total Assets 135 2774 115 2897 -150 5771 1050 1216 1500 800 -200 1025 -100 312 5603 11374 274 2486 0 2654 -120 5294 0 948 1750 800 -160 768 -548 302 3860 9154 Current liabilities Trade creditors Accurals Lease liability Income tax payable Provision for employee entitle Provision for deferred paymen Provision for warranty Total current liabilities Non Current liabilities Lease liability Deferred tax liabiltity Borrowings Total non- current liabilities Total liabilities Net assets Shareholders equity Share capital Retained earnings Revaluation surplus Total shareholders equity 1637 1575 5 243 205 50 314 4029 15 240 3.500 3755 7784 3590 2750 280 560 3590 1483 1110 O 83 298 O O 2974 O 75 3800 3875 6849 2305 2000 130 175 2305 Statement of comprehensive income ( extract) for i 2013 ($000) Income Sales Dividends Expense Bad debts Cost of sales Doubtful debt Inventory written off Provision for warranty Depreciation -Buildings -Plant and equipment Interest Rent Salaries and wages Finance charges Profit before tax Income tax Profit after tax 31394 51 -90 -28205 -35 -50 -314 -40 -100 -315 -600 -1324 -7 365 -215 150 2012 ($000) 27346 47 -85 -24611 -40 0 0 -40 -60 -418 -600 -1231 -90 218 -90 128 Statement of changes in equity for the year ended 2013 2012 ($000) 2380 150 Equity at the beginning of the y Profit Asset revaluation Contributions from owners Equity at the end of the year . . 550 750 3830 • . Additional Information An additional investment of $80000 is acquired for consideration of tennis equipment costing $80000 Land is devalued against a previous increment in the revaluation reserve. The previous increment is fully reversed. Plant and equipment with a cost of $700000 and accumulated depreciation of $500000 are revalued to $1000000 during the year. Plant and equipment with a fair value of $25000 is acquired under finance lease. The residual is guaranteed by the lessee. • Plant and equipment is sold for $20000 cash. Cost is $68000 and no profit or loss is made on the sale. • During the year, one line of wooden tennis equipment is scrapped at a loss of $50000, as there is little demand for this range. • ($000) 2002 128 250 2380 During the year, an investment is made in an associated company, Squash Pty Ltd. Consideration is $1000000, funded by cash of $250000 and the balance by the issue of 500000 shares at $1.50 per share. The purchase agreement includes a clause stating that if profits exceed $110000 in the first financial year after purchase, additional amount are payable amounting to $50000 Rent expense of $600000 is accrued within accruals Interest expense is paid during the year, and dividends are received • Salaries and wages expense includes the expense for employee entitlements • The tax rate is 30% Required: Prepare the statement of cash flow in accordance with IAS7 for the year ending 30th June 2013. Comparatives are not required. Question 1 ABC Limited is a manufacturer of tennis equipment and fashion wear. The statement of financial position as at June 2013 and details of expenses and revenues for the year ending 30th June are as follows: Statement of fianandal position as at 30th June 201 2013 2012 ($000) ($000) Current assets Cash Inventory Prepayments Accounts receivable Provision for doubtful debts Total current assets Non current assets Investment- associated compar Investments Land Buildings Accumulated depreciation-bui Plant and equipment Accumulated depreciation-pla Deferred tax asset Total non-current assets Total Assets 135 2774 115 2897 -150 5771 1050 1216 1500 800 -200 1025 -100 312 5603 11374 274 2486 0 2654 -120 5294 0 948 1750 800 -160 768 -548 302 3860 9154 Current liabilities Trade creditors Accurals Lease liability Income tax payable Provision for employee entitle Provision for deferred paymen Provision for warranty Total current liabilities Non Current liabilities Lease liability Deferred tax liabiltity Borrowings Total non- current liabilities Total liabilities Net assets Shareholders equity Share capital Retained earnings Revaluation surplus Total shareholders equity 1637 1575 5 243 205 50 314 4029 15 240 3.500 3755 7784 3590 2750 280 560 3590 1483 1110 O 83 298 O O 2974 O 75 3800 3875 6849 2305 2000 130 175 2305 Statement of comprehensive income ( extract) for i 2013 ($000) Income Sales Dividends Expense Bad debts Cost of sales Doubtful debt Inventory written off Provision for warranty Depreciation -Buildings -Plant and equipment Interest Rent Salaries and wages Finance charges Profit before tax Income tax Profit after tax 31394 51 -90 -28205 -35 -50 -314 -40 -100 -315 -600 -1324 -7 365 -215 150 2012 ($000) 27346 47 -85 -24611 -40 0 0 -40 -60 -418 -600 -1231 -90 218 -90 128 Statement of changes in equity for the year ended 2013 2012 ($000) 2380 150 Equity at the beginning of the y Profit Asset revaluation Contributions from owners Equity at the end of the year . . 550 750 3830 • . Additional Information An additional investment of $80000 is acquired for consideration of tennis equipment costing $80000 Land is devalued against a previous increment in the revaluation reserve. The previous increment is fully reversed. Plant and equipment with a cost of $700000 and accumulated depreciation of $500000 are revalued to $1000000 during the year. Plant and equipment with a fair value of $25000 is acquired under finance lease. The residual is guaranteed by the lessee. • Plant and equipment is sold for $20000 cash. Cost is $68000 and no profit or loss is made on the sale. • During the year, one line of wooden tennis equipment is scrapped at a loss of $50000, as there is little demand for this range. • ($000) 2002 128 250 2380 During the year, an investment is made in an associated company, Squash Pty Ltd. Consideration is $1000000, funded by cash of $250000 and the balance by the issue of 500000 shares at $1.50 per share. The purchase agreement includes a clause stating that if profits exceed $110000 in the first financial year after purchase, additional amount are payable amounting to $50000 Rent expense of $600000 is accrued within accruals Interest expense is paid during the year, and dividends are received • Salaries and wages expense includes the expense for employee entitlements • The tax rate is 30% Required: Prepare the statement of cash flow in accordance with IAS7 for the year ending 30th June 2013. Comparatives are not required.
Expert Answer:
Answer rating: 100% (QA)
Statement of Cashflows of ABC Limited for the year ending 30th June 2013 Description A CASH FLOW FRO... View the full answer
Related Book For
Accounting and Finance An Introduction
ISBN: 978-1292088297
8th edition
Authors: Peter Atrill, Eddie McLaney
Posted Date:
Students also viewed these accounting questions
-
The statement of financial position as at 31 December 20X2 of Zoom Products Ltd included: Trade receivables...............................85,360 The financial statements for the year ended 31...
-
T Pty Ltd is a manufacturer of tennis equipment and fashion wear. The statement of financial position as at 30 June 2020 and details of expenses and revenues for the year ending 30 June 2020 are as...
-
The Statement of Financial Position as at 31 December 2019 for Dinar Bhd is presented below. Equipment Less: Accumulated depreciation Accounts Receivable Less: Allowance for doubtful debts Prepaid...
-
Your client, Mr. Brakes Inc., owns and operates an auto-motive repair shop in Cooperstown, New York. Mr. Brakes specializes in replacing and repairing brakes on cars, sport utility vehicles, and...
-
Go to the IBM companys Web site (www.ibm.com) and download the most recent financial statements. In the notes to the financial statements, read the significant accounting policies concerning revenue...
-
During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds, and common stocks. The rates of return on each of them were as follows: U.S. government...
-
Search for the latest about Robert Allen Stan- fords' alleged ponzi scheme.
-
Prepare journal entries to record the transactions in E12- 3. In E12- 3. For each of the following transactions, identify the net asset classification ( unrestricted, temporarily restricted,...
-
. e. Received an electric and gas utility bill for $420 to be paid in February. f. Ordered $950 in supplies. g. Paid $2.040 on account in January. h. Received from the home of Stacey Eddy, the ma...
-
Identify by letter the curve you would expect in the titration of a solution containing (a) Disodium maleate, Na 2 M, with standard acid. (b) Pyruvic acid, HP, with standard base. (c) Sodium...
-
The Kidz Klothing store ordered a line of snowsuits at $60 each, less a trade discount of 8%. The selling price is marked up to allow for overhead expenses of 15% of the cost price, and profit of 25%...
-
How does the organizational architecture mediate the complexities inherent in contemporary business ecosystems, particularly in the context of global interconnectivity and rapid technological...
-
The position of an object as a function of time is r=(3.2t++0.90t^2)i^+(1.7t1.2t^2)j^m where t is the time in seconds. a) Find the object's magnitude of the acceleration. Express your answer using...
-
A $89,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is 3.9% compounded semi-annually for a five-year term. (a) Compute the size of the monthly payment. Determine...
-
How do mechanistic and organic organizational structures diverge in their fundamental principles, and what implications do these variances hold for adaptability and responsiveness to environmental...
-
You have the choice of receiving $50,000 now, or $19,000 now and another $35,000 two years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 4.2% compounded...
-
with Reference. Subject: How does sleep deprivation affect mental health? Fully identify the title, author(s), source and date of the article. A copy of the article must be attached. Be specific...
-
What are current assets and current liabilities? How are they different from non-current assets and non-current liabilities?
-
Research indicates that the IRR method is extremely popular even though it has shortcomings when compared to the NPV method. Why might managers prefer to use IRR rather than NPV when carrying out...
-
Andrews and Co. Ltd has been invited to tender for a contract. It is to produce 10,000 metres of an electrical cable in which the business specialises. The estimating department of the business has...
-
The following information has been taken from the financial statements of Juno plc for last year and the year before last: Required: What is the figure for cash generated from the operations for Juno...
-
9. Advertisements for Listerine mouthwash claimed that it was as effective as flossing in preventing tooth plaque and gum disease. This statement was true, but only if the flossing was done...
-
10. Check Enforcement Unit, Inc. (CEU), was in the business of helping merchants collect on bad checks. When a merchant received a dishonored check, it would forward the check directly to CEU, which...
-
11. ROLE REVERSAL Prepare a short-answer question that focuses on deceptive advertisements. Include a sample ad in the question (either a real ad or one that you have made up).
Study smarter with the SolutionInn App