PTC Ltd. was a diversified company that sold various consumer products including food, tobacco, distilled products and
Question:
PTC Ltd. was a diversified company that sold various consumer products including food, tobacco, distilled products and personal care products and financial services. Following are the extract of trail balance of the company for two years:
(Figures in Thousands)
S. No. | Particulars | 31st March 2020 | 31st March 2019 |
1 | Revenue from Operation | 76,22,677 | 69,02,789 |
2 | Cash & Cash Equivalent | 28,912 | 23,952 |
3 | Accounts Receivable | 7,56,152 | 6,87,325 |
4 | Selling, general and administrative expenses | 13,28,107 | 10,25,800 |
5 | Prepaid Expenses | 76,140 | 77,167 |
6 | Investments | 11,16,534 | 10,58,637 |
7 | Accounts Payable | 2,71,452 | 2,38,377 |
8 | Retained Earnings | 20,21,265 | 20,24,474 |
9 | Inventories (Opening) | 12,25,402 | 11,22,679 |
10 | Property, Plant & Equipment (At Cost) | 15,66,268 | 13,66,719 |
11 | Treasury Stock (At Cost) | 1,10,948 | 1,02,705 |
12 | Common Stock (At Par) | 3,22,834 | 1,61,417 |
13 | Convertible preferred stock | 33,828 | 42,611 |
14 | Excise taxes on goods sold | 28,87,616 | 25,98,343 |
15 | Accumulated Depreciation | 7,23,442 | 6,45,734 |
16 | Employees Benefit Expenses | 2,74,558 | 2,65,790 |
17 | Short-term Debts | 4,30,776 | 3,51,112 |
18 | Goodwill | 6,45,210 | 5,77,606 |
19 | Accrued Expenses Payable | 9,22,990 | 7,28,262 |
20 | Additional Paid - in Capital | 53,641 | 57,072 |
21 | Other Non-Current Assets | 1,15,826 | 62,374 |
22 | Long-term Liabilities | 880,674 | 9,32,828 |
For the year ended 31st March 2020, Financial Statements of PTC Ltd. reflects the following transactions (Amount in Thousands):
- Depreciation and amortisation expenses was Rs.1,15,974.
- Closing Inventory as on 31st March 2020 is Rs.12,44,912
- Net income included a loss of Rs.66,046 resulting from the write-off of some obsolete equipment. The equipment has not yet disposed of.
- Net income included Rs.59,610 from PTC’s investment in a subsidiary; none of the income had been received in cash.
- New property, plant and equipment purchases totalled Rs.2,60,075, all paid for with cash. Disposal of fixed assets generated Rs.33,162 cash proceeds (Cost of asset sold is Rs. 92,217).
- Cash dividend were paid in the amount of Rs.2,16,158.
- The firm spent Rs.30,609 to purchase treasury stock on the open market. Some of the shares so acquired were reissued to certain employees as bonus.
- The firm increased its short-term debt as indicated on the balance sheet above. Long-term borrowings decreased by Rs.34,606.
Required:
- Show the final output i.e., a vertical format balance sheet in your report having all the required notes and working shown neatly
- Management further wants your opinion on cash position of the company with a special reference to the cash from Investing & financing activities.
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield