The following information has been extracted from the draft financial statements of Snowdrop, a limited liability...

 

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The following information has been extracted from the draft financial statements of Snowdrop, a limited liability company. SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 2019 2020 GHc'000 GHc'000 GHc'000 Non-current assets 4,600 Current assets Inventory 580 500 Trade receivables 360 Bank 170 Total assets Equity and liabilities Equity Ordinary share capital Capital Surplus Retained earnings Non-current liabilities 10% Loan note (redeemable 31 May 20X5) Current liabilities. Trade payables 365 Taxation 145 Bank overdraft 58 0 688 510 5.540 3,600 Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the following. GHc'000 Operating profit 1,042 Interest payable (10) Profit before taxation 1.032 Taxation. (180) Profit for financial year 852 b) During the year dividends paid were GHc270,000. c) Profit before taxation had been arrived at after charging GHc700,000 for depreciation on non-current assets. d) During the year non-current assets with a net book value of GHc200,000 were sold for GHc180,000. 940 5,540 3,500 300 1,052 4,852 0 450 180 230 900 GHc'000 2,700 3,600 2,370 150 470 2,990 100 The following information has been extracted from the draft financial statements of Snowdrop, a limited liability company. SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 2019 2020 GHc'000 GHc'000 GHc'000 Non-current assets 4,600 Current assets Inventory 580 500 Trade receivables 360 Bank 170 Total assets Equity and liabilities Equity Ordinary share capital Capital Surplus Retained earnings Non-current liabilities 10% Loan note (redeemable 31 May 20X5) Current liabilities. Trade payables 365 Taxation 145 Bank overdraft 58 0 688 510 5.540 3,600 Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the following. GHc'000 Operating profit 1,042 Interest payable (10) Profit before taxation 1.032 Taxation. (180) Profit for financial year 852 b) During the year dividends paid were GHc270,000. c) Profit before taxation had been arrived at after charging GHc700,000 for depreciation on non-current assets. d) During the year non-current assets with a net book value of GHc200,000 were sold for GHc180,000. 940 5,540 3,500 300 1,052 4,852 0 450 180 230 900 GHc'000 2,700 3,600 2,370 150 470 2,990 100

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ANSWER Solution Cash flow statement Cash Flows from Operating Activities Net Profit Adjustments to r... View the full answer