C. Anna is a sole trader who prepares financial statements annually to 31 December. Her summarised...

 

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C. Anna is a sole trader who prepares financial statements annually to 31 December. Her summarised statements of financial position for the last two years are shown below. 2021 2020 Non-current assets Furniture at cost Less: Accumulated depreciation Current assets Inventory Equipment at cost 6,300 Less: Accumulated depreciation 5,040 Trade receivables Cash Total assets Current liabilities Accrued expenses Non-current liabilities Loan from G. Mark Net assets Capital Opening balance Add: Net profit for the year Cash introduced Less: Drawings Total capital £ Additional information: 13,100 8,740 4,070 1,300 8,800 500 7,000 £ 4,360 1,260 5,620 14,170 19,790 7,500 12,290 9,030 1,260 2,000 12,290 12,290 £ 10,200 6,120 6,300 3,780 5,120 910 400 1,000 3,000 £ 4,080 2,520 6,600 6,430 13,030 4,000 9,030 7,990 5,040 13,030 4,000 9,030 Furniture costing £2,900 was purchased during the year. There were no disposals of property, plant and equipment during the year. Required: Prepare a statement of cash flows for the year ended 31 December 2021, using the indirect method. (16 marks) C. Anna is a sole trader who prepares financial statements annually to 31 December. Her summarised statements of financial position for the last two years are shown below. 2021 2020 Non-current assets Furniture at cost Less: Accumulated depreciation Current assets Inventory Equipment at cost 6,300 Less: Accumulated depreciation 5,040 Trade receivables Cash Total assets Current liabilities Accrued expenses Non-current liabilities Loan from G. Mark Net assets Capital Opening balance Add: Net profit for the year Cash introduced Less: Drawings Total capital £ Additional information: 13,100 8,740 4,070 1,300 8,800 500 7,000 £ 4,360 1,260 5,620 14,170 19,790 7,500 12,290 9,030 1,260 2,000 12,290 12,290 £ 10,200 6,120 6,300 3,780 5,120 910 400 1,000 3,000 £ 4,080 2,520 6,600 6,430 13,030 4,000 9,030 7,990 5,040 13,030 4,000 9,030 Furniture costing £2,900 was purchased during the year. There were no disposals of property, plant and equipment during the year. Required: Prepare a statement of cash flows for the year ended 31 December 2021, using the indirect method. (16 marks)

Answer rating: 100% (QA)

C Anna Statement of Cash Flows For the year ended December 31 2021 Cash flows from operating activities Amount Amount Net profit for the year 1260 Non... View the full answer