Below are the statements of financial position of Dickson Co as at 31 March 20X6 and...
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Below are the statements of financial position of Dickson Co as at 31 March 20X6 and 31 March 20X5, together with the income statement for the year ended 31 March 20X6. STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20X6 20X5 $'000 $'000 Non-current assets 825 637 Property, plant and equipment Goodwill 100 100 Development expenditure 290 160 1,215 897 Current assets Inventories 360 227 Trade receivables 274 324 143 46 Investments Cash 29 117 806 714 Total assets 2,021 1,611 Equity Share capital $1 ordinary shares 500 400 Share premium 350 100 Revaluation surplus 160 60 Retained earnings 151 152 1.161 712 Non-current liabilities 6% loan notes 150 100 Finance lease liabilities 100 80 Deferred tax 48 45 298 225 Current liabilities Trade payables 274 352 Finance lease liabilities 17 Current tax 56 Loan note interest Dividends Bank overdraft Total equity and liabilities INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 20X6 Revenue Cost of sales Gross profit Other expenses Finance costs Profit before tax Income tax expense Profit for the year 5 78 132 2,021 12 153 103 54 1,611 $'000 1,476 (962) 514 (157) (15) 342 (162) 180 Notes: (1) Goodwill arose on the acquisition of unincorporated businesses. During the year ended 31 March 20X6 expenditure on development projects totalled $190,000. (2) During the year ended 31 March 20X6 items of property, plant and equipment with a carrying value of $103,000 were sold for $110,000. Depreciation charged in the year on property, plant and equipment totalled $57,000. Dickson purchased $56,000 of property, plant and equipment by means of finance leases, payments being made in arrears on the last day of each accounting period. (3) The current asset investments are government bonds and management has decided to class them as cash equivalents. (4) The new loan notes were issued on 1 April 20X5. Finance cost includes loan note interest and finance lease finance charges only. (5) During the year Dickson made a 1 for 8 bonus issue capitalising its retained earnings followed by a rights issue. (6) Dividends declared during the period totalled $131,000. Required Prepare a statement of cash flows for the year ended 31 March 20X6 for Dickson Co in accordance with IAS 7 Statement of cash flows, using the indirect method. (15 marks) Below are the statements of financial position of Dickson Co as at 31 March 20X6 and 31 March 20X5, together with the income statement for the year ended 31 March 20X6. STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 20X6 20X5 $'000 $'000 Non-current assets 825 637 Property, plant and equipment Goodwill 100 100 Development expenditure 290 160 1,215 897 Current assets Inventories 360 227 Trade receivables 274 324 143 46 Investments Cash 29 117 806 714 Total assets 2,021 1,611 Equity Share capital $1 ordinary shares 500 400 Share premium 350 100 Revaluation surplus 160 60 Retained earnings 151 152 1.161 712 Non-current liabilities 6% loan notes 150 100 Finance lease liabilities 100 80 Deferred tax 48 45 298 225 Current liabilities Trade payables 274 352 Finance lease liabilities 17 Current tax 56 Loan note interest Dividends Bank overdraft Total equity and liabilities INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 20X6 Revenue Cost of sales Gross profit Other expenses Finance costs Profit before tax Income tax expense Profit for the year 5 78 132 2,021 12 153 103 54 1,611 $'000 1,476 (962) 514 (157) (15) 342 (162) 180 Notes: (1) Goodwill arose on the acquisition of unincorporated businesses. During the year ended 31 March 20X6 expenditure on development projects totalled $190,000. (2) During the year ended 31 March 20X6 items of property, plant and equipment with a carrying value of $103,000 were sold for $110,000. Depreciation charged in the year on property, plant and equipment totalled $57,000. Dickson purchased $56,000 of property, plant and equipment by means of finance leases, payments being made in arrears on the last day of each accounting period. (3) The current asset investments are government bonds and management has decided to class them as cash equivalents. (4) The new loan notes were issued on 1 April 20X5. Finance cost includes loan note interest and finance lease finance charges only. (5) During the year Dickson made a 1 for 8 bonus issue capitalising its retained earnings followed by a rights issue. (6) Dividends declared during the period totalled $131,000. Required Prepare a statement of cash flows for the year ended 31 March 20X6 for Dickson Co in accordance with IAS 7 Statement of cash flows, using the indirect method. (15 marks)
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Cash flows from operating activities Profit before tax Adjustments Deprec... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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