Additional information

1. There was an impairment of $24,000 on the inventory value during the year
2. Depreciation for PPE (property plant and equipment) was $76, 500
3. A non-current asset that was bought for $96,480 and has been depreciated for $68,250 was disposed for cash
4. All the dividends of $328, 500 were paid during the year
5. The entity makes all the purchases and sales on credit
6. All other expenses are on cash basis

Required: Your duty in Thakholi accounting departments is to

1. Reconcile the profit from operations to cash from operating activities for the year ended 31^st December 2019(10 marks)
2. Prepare a cash flow statement for the year ended 31^st December 2019

Transcribed Image Text:

Revenue Cost of sales Gross profit Distribution cost Administrative expenses Loss on disposable of a non-current asset Profit from operations Finance cost Profit before tax Tax charge Profit for the year $'000 1800 (1000) 800 (170) (250) (15) 365 (120) 245 (61) 184 Revenue Cost of sales Gross profit Distribution cost Administrative expenses Loss on disposable of a non-current asset Profit from operations Finance cost Profit before tax Tax charge Profit for the year $'000 1800 (1000) 800 (170) (250) (15) 365 (120) 245 (61) 184

Answer rating: 100% (QA)

Answer 1 Reconcile the profit from operations to cash from operating activities for the year ended ... View the full answer