Question: can you help me solve this Question B2 Total: 30 Marks Presented below are the statement of financial position for Swansea ple as al 31

can you help me solve this
can you help me solve this Question B2 Total: 30 Marks Presented
below are the statement of financial position for Swansea ple as al

Question B2 Total: 30 Marks Presented below are the statement of financial position for Swansea ple as al 31 May 2019 and 2020. Also provided is an extract from the company's income statement for the period ending 31 May 2020 together with certain additional information Swansea pic statements of financial E000 E'000 position at 31 May 2020 2019 14,400 5,250 1,050 20,700 14,400 5,445 2,475 22,320 Non-current Assets: Land at cost Building at cost Equipment at cost Total Non-Current Assets Current assets: Inventory Trade receivables Cash in bank Total Current Assets TOTAL ASSETS 4,680 2,970 1.665 9.315 30.015 4,500 2,700 2,700 9.900 32.220 9,000 9,000 15,000 3,000 3,150 21.150 6,300 24.300 Equity: Preference shares @ 10.00 Ordinary Shares @1.00 each Share Premium Retained Earnings Total Equity Current Liabilities: Trade payables Tax Accruals Total current liabilities 990 1,350 1. 125 3.465 900 1.620 900 3.420 Non-current Liabilities: Long term loan TOTAL EQUITY + LIABILITY 5.400 30.015 4.500 32.220 An extract from the Swansea Pic Income Statement for the year ended 31 May 2020 Turnover Operating costs (including depreciation) Operating profit Profil on disposal of non-current assets Finance costs Profit Before Tax TAX payable Profit after Tax '000 81,000 (77,400) 3,600 225 (450) 3.375 (1,350) 2.025 1. The retained eamings balance at 31 May 2020, contains the profit after tax generated during the penod ended 31 May 2020 and the dividends payment for ordinary shares 2. In respect to non-current assets No depreciation has been charged and there were no additions or disposals of land during the year Depreciation of 2,700,000 was charged in the period ending 31 May 2020 on other non-current assets which include equipment and building During the year ended 31 May 2020 an addition was made to equipment costing $1,980,000 Also equipment with a cost of 7.200,000 and accumulated depreciation of 8 300,000 were disposed of 3. During the year 6.000.000 ordinary shares were issued at a premium of 0.50 per share IV 4. On 31 May 2020 the preference shares were redeemed at their par value. and no adjustment needs to be made for preferred dividends REQUIRED Prepare a statement of cash flows in accordance with AS 7 for Swansea pic for the year ended 31 May 2020 using the indirect method. Question B2 Total: 30 Marks Presented below are the statement of financial position for Swansea ple as al 31 May 2019 and 2020. Also provided is an extract from the company's income statement for the period ending 31 May 2020 together with certain additional information Swansea pic statements of financial E000 E'000 position at 31 May 2020 2019 14,400 5,250 1,050 20,700 14,400 5,445 2,475 22,320 Non-current Assets: Land at cost Building at cost Equipment at cost Total Non-Current Assets Current assets: Inventory Trade receivables Cash in bank Total Current Assets TOTAL ASSETS 4,680 2,970 1.665 9.315 30.015 4,500 2,700 2,700 9.900 32.220 9,000 9,000 15,000 3,000 3,150 21.150 6,300 24.300 Equity: Preference shares @ 10.00 Ordinary Shares @1.00 each Share Premium Retained Earnings Total Equity Current Liabilities: Trade payables Tax Accruals Total current liabilities 990 1,350 1. 125 3.465 900 1.620 900 3.420 Non-current Liabilities: Long term loan TOTAL EQUITY + LIABILITY 5.400 30.015 4.500 32.220 An extract from the Swansea Pic Income Statement for the year ended 31 May 2020 Turnover Operating costs (including depreciation) Operating profit Profil on disposal of non-current assets Finance costs Profit Before Tax TAX payable Profit after Tax '000 81,000 (77,400) 3,600 225 (450) 3.375 (1,350) 2.025 1. The retained eamings balance at 31 May 2020, contains the profit after tax generated during the penod ended 31 May 2020 and the dividends payment for ordinary shares 2. In respect to non-current assets No depreciation has been charged and there were no additions or disposals of land during the year Depreciation of 2,700,000 was charged in the period ending 31 May 2020 on other non-current assets which include equipment and building During the year ended 31 May 2020 an addition was made to equipment costing $1,980,000 Also equipment with a cost of 7.200,000 and accumulated depreciation of 8 300,000 were disposed of 3. During the year 6.000.000 ordinary shares were issued at a premium of 0.50 per share IV 4. On 31 May 2020 the preference shares were redeemed at their par value. and no adjustment needs to be made for preferred dividends REQUIRED Prepare a statement of cash flows in accordance with AS 7 for Swansea pic for the year ended 31 May 2020 using the indirect method

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!