b) Prepare a report to the directors of Beckford Ltd analyzing the cash movement to 30 September 2021 and discuss the advantages to the company in preparing a statement of cash flows.

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Beckford Ltd is a large Irish manufacturing company with a financial year end of 30 September each year. You are a financial accountant working in the finance team in Beckford Ltd and your manager has asked you to prepare some analysis on the cash flows of Beckford Ltd. Below is the draft Statement of Profit or Loss and Other Comprehensive Income. Statement of Changes in Equity, and the Statement of Financial Position of Beckford Ltd. Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 30 September 2021 Revenue Cost of Sales Gross Profit Distribution Costs Administrative Expenses Finance Costs Profit before Tax Tax Profit after Tax Other Comprehensive Income Gain on Revaluation of Land Total Comprehensive Income 1 October 2020 Issue of Shares Land Revaluation Profit for the Year Ordinary Dividend 30 September 2021 Ord Share Capital €000 18,000 432 18,432 Statement of Changes in Equity for the Year Ended 30 September 2021 Revaluation Retained Reserve Earnings €000 €000 1,080 5,634 Share Premium €000 1,170 108 1,278 960 €000 2,040 47,250 (30,978) 16,272 (4,140) (5,490) (324) 6,318 (3,096) 3,222 960 4,182 3,222 (438) 8,418 Total €000 25,884 540 960 3,222 (438) 30,168 Beckford Ltd is a large Irish manufacturing company with a financial year end of 30 September each year. You are a financial accountant working in the finance team in Beckford Ltd and your manager has asked you to prepare some analysis on the cash flows of Beckford Ltd. Below is the draft Statement of Profit or Loss and Other Comprehensive Income. Statement of Changes in Equity, and the Statement of Financial Position of Beckford Ltd. Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 30 September 2021 Revenue Cost of Sales Gross Profit Distribution Costs Administrative Expenses Finance Costs Profit before Tax Tax Profit after Tax Other Comprehensive Income Gain on Revaluation of Land Total Comprehensive Income 1 October 2020 Issue of Shares Land Revaluation Profit for the Year Ordinary Dividend 30 September 2021 Ord Share Capital €000 18,000 432 18,432 Statement of Changes in Equity for the Year Ended 30 September 2021 Revaluation Retained Reserve Earnings €000 €000 1,080 5,634 Share Premium €000 1,170 108 1,278 960 €000 2,040 47,250 (30,978) 16,272 (4,140) (5,490) (324) 6,318 (3,096) 3,222 960 4,182 3,222 (438) 8,418 Total €000 25,884 540 960 3,222 (438) 30,168

Answer rating: 100% (QA)

Answers and Explanation a Statement of Cash Flows for Beckford Ltd for the year ended 30 September 2021 Cash flows from operating activities Profit before tax 6318 Adjustments for Depreciation 486 Amo... View the full answer