DotCom Plc’s financial reports for 2021 and 2022 are presented below.

DotCom Plc Balance Sheet as at 31 December
	£	£
ASSETS	2022	2021
NON-CURRENT
Intangibles	3640	3640
Land	3300	4130
Plant and Equipment	21130	23450
Accumulated depreciation on Plant and Equipment	-11880	-9740
Plant and Equipment (Net)	9250	13710
Investments in Joint Venture	7440	7440
TOTAL NON-CURRENT ASSETS	23630	28920
CURRENT
Inventories	1830	6340
Trade Receivables	5540	3200
less provision for doubtful debts	-45	-1045
Net Trade Receivables	5495	2155
Cash and Cash Equivalents	23513	8163
TOTAL CURRENT ASSETS	30838	16658
TOTAL ASSETS	54468	45578
LIABILITIES
CURRENT
Accounts payable	1692	4862
Tax payable	762	839
Interest payable	553	603
Loan	1895	2305
TOTAL CURRENT LIABILITIES	4902	8609
NON-CURRENT
Loan	6054	6294
TOTAL NON-CURRENT LIABILITIES	6054	6294
TOTAL LIABILITIES	10956	14903
NET ASSETS	43512	30675
SHAREHOLDER EQUITY
Share Capital	19143	17943
Share Premium Reserve	10400	6800
Shares held in Treasury	0	0
Retained Earnings	13969	5932
TOTAL SHAREHOLDER EQUITY	43512	30675

DotCom Plc Income Statement For year ending 31 December 2022
	£
Sales	31400
Cost of Goods Sold	-8630
Gross Profit	22770
Sales, general and administrative expenses	-14780
Loss on disposal of plant and equipment	-1010
Gain on disposal of land	2740
Interest income from joint venture	1170
Profit before Interest and Tax	10890
Interest expense	-740
Profit before tax	10150
Tax expense	-1523
Net income	8627

NOTES:

1. Land was sold for cash in 2022. A piece of land was purchased for £3670 in 2021

2. Equipment with a cost of £7180 and accumulated depreciation of £4730 was sold during the year

3. Bad debts of £3500 were written off in mid-2022. At the end of 2022 an adjustment to the provision for doubtful debts was made, based on a revised assessment of their collectability

4. New non-current loans of £280 were taken out in 2022

5. Shares have a par value of £1 each. New shares were issued in 2022

6. Included in Sales, General and Administrative expenses are amounts relating to depreciation and provision for doubtful debts

Prepare cash flow statement for 2022 using indirect method. 

Answer rating: 100% (QA)

DotCom PlcCash Flow Statement for the year ending December 31 2022 Net Cash from Operating Activitie... View the full answer