SECTION A Answer any THREE questions from this section Question 1 Here are the Statements of Financial Position of Copterman Ltd, for two successive year-ends: As at 30 April.... 2017 2018 Non-Current Assets Intangible: Goodwill 30,000 Tangible: At Cost 420,000 870,000 Accumulated depreciation (220.000) 200,000 (510.000) 360,000 Investments 80.000 45.000 310,000 405,000 Current Assets: Inventory 200,000 260,000 Trade receivables 62,000 82.000 Bank 45,000 Cash 10,000 317,000 8.000 350,000 Total Assets 627.000 755.000 Equity: 1 Ordinary Shares 200.000 230.000 Share Premium 150,000 185.000 Retained Earnings 40.000 390,000 - 73.000 488,000 Current Liabilities Trade Payables 194.000 208,000 Bank Overdraft 20,000 Unpaid Dividends Approved 25,000 20,000 Accruals 18.000 237,000 19.000 267.000 Total Equity and Liabilities 627.000 755.000 Further information: 1. Tangible non-current assets, originally costing 20,000 and with accumulated depreciation of 15.000 were sold during the year ended 30 April 2018 for 9,000 cash. This transaction is 2. An interim (mid-year) dividend of 25,000 has already been paid from the profits for the year 3. The operating profit for the year ended 30 April 2018 was 78,000 4. The investments disposed of were sold at their original cost price. Required: a) Prepare a Statement of Cash Flows for Copterman Lid for the year to 30 April 2018. Include an analysis of cash and cash equivalents. (20 marks) b) Analyse the solvency situation of the company over the twelve-month period. Calculate two appropriate ratios (per year) and use these to explain why solvency has either improved or deteriorated. Your answer should include an explanation of the difference between profit and cash flow. (8 marks) Total 28 marks 2