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Simplified financial statements for York plc are:Income statement for the year ended 30 September 2015 Statement of

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Simplified financial statements for York plc are:Income statement for the year ended 30 September 2015

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Statement of financial position as at 30 September

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Notes:1 Operating expenses include depreciation of ?13 million and a surplus of ?3.2 million on the sale of non-current assets.2 The expense and the cash outflow for interest payable are equal.3 A dividend of ?3.5 million was paid during 2015.4 Non-current asset costs and depreciation:

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Required:Prepare a statement of cash flows for York plc for the year ended 30 September 2015.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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£m Revenue 290.0 Cost of sales (215.0) Gross profit Operating expenses (Note 1) Operating profit Interest payable (Note 2) 75.0 (62.0) 13.0 (3.0) Profit before taxation 10.0 (2.6) Taxation Profit for the year 7.4 2014 2015 £m £m ASSETS Non-current assets (Note 4) 80.0 85.0 Current assets Inventories and trade receivables 119.8 122.1 Cash at bank 9.2 16.6 129.0 138.7 Total assets 209.0 223.7 EQUITY AND LIABILITIES Equity Share capital Share premium account 35.0 40.0 30.0 30.0 Reserves 31.0 34.9 96.0 104.9 Non-current liabilities Borrowings 32.0 35.0 Current liabilities Trade payables 80.0 82.5 Taxation 1.0 1.3 81.0 83.8 Total equity and liabilities 209.0 223.7

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ANSWER To prepare the statement of cash flows for York plc for the year ended 30 September 2015 we need to follow the direct method The statement will ...View the full answer


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Accounting and Finance An Introduction

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Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.

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