The following information have been extracted from the financial statements of GOLD plc. Statement of financial position
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Question:
The following information have been extracted from the financial statements of GOLD plc. Statement of financial position
2021 | 2020 | |
£m | £m | |
Non-current assets: | ||
Property, plant and equipment | 4,126 | 2,940 |
Accumulated depreciation | -1,106 | -728 |
3,020 | 2,212 | |
Current assets: | ||
Inventory | 368 | 280 |
Trade receivables | 864 | 294 |
Cash and cash equivalents | 60 | 84 |
1,292 | 658 | |
Total assets | 4,312 | 2,870 |
Current liabilities: | ||
Trade payables | 252 | 182 |
Interest payable | 112 | 98 |
Taxes payable | 140 | 98 |
504 | 378 | |
Non-current liabilities: | ||
Long-term loans | 364 | 252 |
Shareholders’ equity: | ||
Ordinary share capital at £1 each | 2,128 | 1,680 |
Share premium | 364 | 322 |
Retained earnings | 952 | 238 |
Total liabilities and shareholders’ equity | 4,312 | 2,870 |
Further information
- During 2021, the company sold equipment, which were
- riginally bought at a cost of £352m and had accumulated depreciation of £176m. The gains on disposal were £40m.
- The company acquired for cash new Property, plant and equipment during 2021 and there were no other movements in the Property, plant and equipment during 2021.
- During 2021, the company paid
- Interest of £266m
- Dividend of £434m
- Tax of £448m
Required:
A) Prepare the statement of cash flows. (Show all calculations)
[10 marks]
B) Discuss why some users did not welcome the Internationa Accounting Standard IAS 7 “statement of cash flows"
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Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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