Below are extracts from the financial statements of Aqua Pic: Statement of profit or loss for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Below are extracts from the financial statements of Aqua Pic: Statement of profit or loss for the year ended 31 December 2021 Revenue 321,825 Cost of sales (273,000) Gross profit 48,825 7,140 (60) (9,450) Investment income Loss on disposal Distribution costs Administrative expenses (5,250) 41,205 (4,200) 37,005 Profit from operations Finance costs Profit before tax Income tax expense Profit for the period (3,150) 33,855 Statements of financial position 31 December 31 December 2021 2020 Assets Non-current assets Property, plant and equipment 23,880 8,925 Investments 26,250 26,250 50,130 35,175 Current assets Inventories 10,500 20,475 Trade and other receivables 19,950 12,600 Cash and cash equivalents 4,305 1,680 34,755 84,885 34,755 69,930 Total assets Equity and liabilities Capital and reserves Share capital Share premium 10,500 5,250 9,450 3,675 Retained earnings 35,745 14,490 51,495 27,615 Non-current liabilities Long term borrowings 24,150 10,920 Current liabilities Trade and other payables 2,625 19,845 Interest payable 2,415 1,050 Taxation 4,200 10,500 9,240 31,395 Total equity and liabilities 84,885 69,930 Page 5 of 10 Additional data 1. The share capital of the company consists of ordinary shares with a nominal value of £1.00. 2. The inventories at the close of business on 31 December 2021 were valued at £19,782,000. 3. Land, which is non-depreciable, is to be revalued to £46,000,000 and this revaluation is to be included in the financial statements for the year ended 31 December 2021. 4. Depreciation is to be provided for the year to 31 December 2021 as follows: Buildings 2.5% per annum Straight line basis This should be charged to administrative expenses. 5. Depreciation is to be provided for the year to 31 December 2021 as follows: Plant & equipment 15% per annum Reducing balance basis This is to be apportioned as follows: Cost of sales 60% Distribution costs 20% Administrative expenses 20% 6. It has been decided to write off a debt of £309,000 which will be charged to administrative expenses. 7. Included within selling & distribution costs is £2,100,000 relating to the advertising costs that will run from 1 July 2021 to 30 June 2022. This cost is allocated evenly throughout this period. 8. The interest included within the trial balance relates to the interest paid on the bank loan for the first six months of the financial year. 9. The corporation tax charge for the year has been calculated as £5,670,000. 10. All of the operations are continuing operations. Additional information: 1. Profit from operations is after charging depreciation on the property, plant and equipment of £4,725. 2. Plant and machinery costing £840 and with accumulated depreciation of £630, was sold during the year. 3. Investment income of £7,140 is made up of £3,150 interest receivable and £3,990 dividends received. 4. On the 1 April 2021 Aqua Plc paid the final dividend for financial year 2020 which was finalised at £9,450. On the 1 July 2021 Aqua Plc also paid an interim dividend for financial year 2021 for £3,150. Required: Using the pro-forma in your answer booklet provided prepare a statement of cash flows for Aqua Plc for the year ended 31 December 2021 in compliance with IAS 7 Statement of Cash Flows. Total: (25 marks) Below are extracts from the financial statements of Aqua Pic: Statement of profit or loss for the year ended 31 December 2021 Revenue 321,825 Cost of sales (273,000) Gross profit 48,825 7,140 (60) (9,450) Investment income Loss on disposal Distribution costs Administrative expenses (5,250) 41,205 (4,200) 37,005 Profit from operations Finance costs Profit before tax Income tax expense Profit for the period (3,150) 33,855 Statements of financial position 31 December 31 December 2021 2020 Assets Non-current assets Property, plant and equipment 23,880 8,925 Investments 26,250 26,250 50,130 35,175 Current assets Inventories 10,500 20,475 Trade and other receivables 19,950 12,600 Cash and cash equivalents 4,305 1,680 34,755 84,885 34,755 69,930 Total assets Equity and liabilities Capital and reserves Share capital Share premium 10,500 5,250 9,450 3,675 Retained earnings 35,745 14,490 51,495 27,615 Non-current liabilities Long term borrowings 24,150 10,920 Current liabilities Trade and other payables 2,625 19,845 Interest payable 2,415 1,050 Taxation 4,200 10,500 9,240 31,395 Total equity and liabilities 84,885 69,930 Page 5 of 10 Additional data 1. The share capital of the company consists of ordinary shares with a nominal value of £1.00. 2. The inventories at the close of business on 31 December 2021 were valued at £19,782,000. 3. Land, which is non-depreciable, is to be revalued to £46,000,000 and this revaluation is to be included in the financial statements for the year ended 31 December 2021. 4. Depreciation is to be provided for the year to 31 December 2021 as follows: Buildings 2.5% per annum Straight line basis This should be charged to administrative expenses. 5. Depreciation is to be provided for the year to 31 December 2021 as follows: Plant & equipment 15% per annum Reducing balance basis This is to be apportioned as follows: Cost of sales 60% Distribution costs 20% Administrative expenses 20% 6. It has been decided to write off a debt of £309,000 which will be charged to administrative expenses. 7. Included within selling & distribution costs is £2,100,000 relating to the advertising costs that will run from 1 July 2021 to 30 June 2022. This cost is allocated evenly throughout this period. 8. The interest included within the trial balance relates to the interest paid on the bank loan for the first six months of the financial year. 9. The corporation tax charge for the year has been calculated as £5,670,000. 10. All of the operations are continuing operations. Additional information: 1. Profit from operations is after charging depreciation on the property, plant and equipment of £4,725. 2. Plant and machinery costing £840 and with accumulated depreciation of £630, was sold during the year. 3. Investment income of £7,140 is made up of £3,150 interest receivable and £3,990 dividends received. 4. On the 1 April 2021 Aqua Plc paid the final dividend for financial year 2020 which was finalised at £9,450. On the 1 July 2021 Aqua Plc also paid an interim dividend for financial year 2021 for £3,150. Required: Using the pro-forma in your answer booklet provided prepare a statement of cash flows for Aqua Plc for the year ended 31 December 2021 in compliance with IAS 7 Statement of Cash Flows. Total: (25 marks)
Expert Answer:
Answer rating: 100% (QA)
CASH FLOW FROM INVESTING ACTIVITIES Book Value of Machinery Sold840630 210 Loss on Sale of ... View the full answer
Related Book For
Financial Accounting
ISBN: 978-0133472264
5th Canadian edition
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
Posted Date:
Students also viewed these accounting questions
-
Below is data from the financial statements of Stanford, Inc. Net sales $3,200,000 Net income 352,000 Net cash flows from operating activities 456,000 Total assets, beginning of year 2,890,000 Total...
-
The data below are adapted from the financial statements of Long Boat Ltd. at the end of a recent year (in thousands). Requirements 1. Prepare Long Boat's statement of cash flows for the year. Follow...
-
The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/60. a. For 2010 and 2009, determine (1) the accounts receivable turnover and (2) the...
-
EG Corporation redeemed 200 shares of stock from one of its shareholders in exchange for $200,000. The redemption represented 20% of the corporation's outstanding stock. The redemption was treated as...
-
Text messages have been a major source of revenue for cell phone carriers and for the first time in history the aver-age number of text messages per month decreased from the second to the third...
-
Consider the following scenario. Each day, a butcher buys a 200-kilogram pig for $360. The pig can be processed to yield the following three products: Day 1 The butcher buys a pig. The $360 joint...
-
The Hull White model is \[d X_{t}=a(t)\left(b(t)-X_{t} ight) d t+\sigma(t) d W_{t}\] In this problem take \(a(t)=\theta_{1} t, b(t)=\theta_{2} \sqrt{t}\) and \(\sigma(t)=\theta_{3} t\) where...
-
The general ledger of Stephens Products, Inc. contains the following control account: If the materials charged to the one uncompleted job still in process amounted to $3,400, what amount of labor and...
-
Placid Lake Corporation acquired 8 0 percent of the outstanding voting stock of Scenic, Incorporated, on January 1 , 2 0 2 3 , when Scenic had a net book value of $ 4 8 0 , 0 0 0 . Any excess fair...
-
For the case The WM. Wrigley Jr. Company: Capital Structure, Valuation, and the Cost of Capital(Darden Case: UVAF1482) please answer the following questions and explain your reasoningwhere...
-
What is the most widely used method to determine the required rate of return on common equity? Explain.
-
______________ refers to the location, time, and occasion where communication occurs.
-
___________ are practices, behaviors, celebrations, and traditions common to people, organizations, and institutions.
-
What are the two main purposes of statistical inference mentioned by Bard and Frederick? What is the difference between these two purposes, and how are the purposes related?
-
_____________ are the standards used to make a decision.
-
Perceiving your communication as effective while those around you perceive it as ineffective is known as ______________.
-
Objective The objective of this lab is for you to develop some classes for use in card games. The classes you'll build are: Card: models a playing card. Deck: models a deck of 52 cards Hand: models...
-
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
-
Assume Hershey Chocolate Ltd. purchased a piece of manufacturing machinery. Classify each of the following expenditures as an asset expenditure or an immediate expense related to machinery: (a) sales...
-
During the first month of operations (January 2014), Music Services Ltd. Completed the following selected transactions: a. The business has cash of $10,000 and a building valued at $50,000. The...
-
Suppose you work in the loan department of CIBC. Dean Young, owner of Dean Young Sports Equipment, has come to you seeking a loan for $500,000 to expand operations. Young proposes to use accounts...
-
Which of Yellows statements regarding the factors affecting the selection of a trading strategy is correct? A. Statement 1 B. Statement 2 C. Statement 3 Robert Harding is a portfolio manager at...
-
To fill the remaining portion of the ABC order, Yellow is using: A. an arrival price trading strategy. B. a TWAP participation strategy. C. a VWAP participation strategy. Robert Harding is a...
-
Given the parameters for the benchmark given by Harding, Yellow should recommend a benchmark that is based on the: A. arrival price. B. time-weighted average price. C. volume-weighted average price....
Study smarter with the SolutionInn App