Prepare a Statement of Cash Flows for Datar Limited for the year ended 31 December 2007 using
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Question:
- Prepare a Statement of Cash Flows for Datar Limited for the year ended 31 December 2007 using the ‘direct method’ detailed in AASB 107.
- Reconcile Qatar’ Cash Flows from Operations to the reported profit, in accordance with the above standard.
Qatar Ltd Balance Sheet as at 31 December 2007
2007 | 2006 | |
Cash | 14,230 | 24,980 |
Debtors | 22,370 | 16,440 |
Less allowance for B&D Debts | (880) | (630) |
Inventory | 48,750 | 39,700 |
Plant & Equipment (P&E) | 88,440 | 67,500 |
Accumulated Depn (P&E) | (16,220) | (28,370) |
156,690 | 119,620 | |
Accounts Payable | 7,920 | 4,830 |
Accrued Expenses | 3,000 | 6,120 |
Income Tax Payable | 11,360 | 7,980 |
Interest Payable | 1,230 | 520 |
Bank Loan | 42,000 | 60,000 |
Paid Up Capital | 68,000 | 28,000 |
Retained Earnings | 23,180 | 12,170 |
156,690 | 119,620 |
Qatar Limited
Income Statement for year ended 31 December 2007
Sales | 148,900 | |
Less COGS | 68,390 | |
Gross Profit on Sales | 80,510 | |
+ Profit on Sale (Plant & Equipment) | 2,600 | |
Gross Profit | 83,110 | |
less expenses | ||
Depreciation | 8,400 | |
Interest | 3,650 | |
Bad & Doubtful Debts | 1,110 | |
Other Expenses | 23,470 | 36,630 |
Profit before tax | 46,480 | |
Income Tax Expense | 11,360 | |
Profit after tax | 35,120 |
Note: During 2006/07, Qatar disposed of Plant & Equipment with a book value of $11,400
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
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