DELTA LTD INCOME STATEMENT FOR 31 DEC 2019 2019 '000 Revenue 5,250 Cost of sales (3,730)...

 
 

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DELTA LTD INCOME STATEMENT FOR 31 DEC 2019 2019 £'000 Revenue 5,250 Cost of sales (3,730) Gross profit 1,520 Expenses (868) Profit before tax 652 Corporation tax (150) Profit after tax 502 STATEMENT OF FINANCIAL POSITION AT 31 DEC 2019 2018 2019 ASSETS £'000 £'000 Non- current Assets Land at cost 960 900 PPE at cost 1,150 900 Less: Accum.Depreciation (230) (350) Net Book Value 1,570 1,760 Current Assets Inventories 374 490 Trade Receivables 276 243 Cash 30 207 Total Assets 2,250 2,700 Share Capital £1 shares 750 600 Share Premium 100 220 Retained Earnings 376 758 Current Liabilities Trade Payables 420 380 Corporation Tax 140 180 Interest payable 14 12 Non- current Liabilities Debentures - 8% 400 600 Total Equity and Liabilities 2,250 2,700 You are given the following information: • Plant which originally cost £90,000 was sold for cash of £20,000. The profit/loss on disposal is included in expenses. Accumulated depreciation relating to the plant sold amounted to £63,000. • The debentures of £200,000 were repaid on 30 June 2018. Interest expense is included in expenses. Company issued 150,000 new shares at £1.80 per share during the year. • Dividend payment for the year was £120,000. Required Prepare the statement of cash flows fully under the indirect method. Show your supporting workings. (Total: 25 marks) DELTA LTD INCOME STATEMENT FOR 31 DEC 2019 2019 £'000 Revenue 5,250 Cost of sales (3,730) Gross profit 1,520 Expenses (868) Profit before tax 652 Corporation tax (150) Profit after tax 502 STATEMENT OF FINANCIAL POSITION AT 31 DEC 2019 2018 2019 ASSETS £'000 £'000 Non- current Assets Land at cost 960 900 PPE at cost 1,150 900 Less: Accum.Depreciation (230) (350) Net Book Value 1,570 1,760 Current Assets Inventories 374 490 Trade Receivables 276 243 Cash 30 207 Total Assets 2,250 2,700 Share Capital £1 shares 750 600 Share Premium 100 220 Retained Earnings 376 758 Current Liabilities Trade Payables 420 380 Corporation Tax 140 180 Interest payable 14 12 Non- current Liabilities Debentures - 8% 400 600 Total Equity and Liabilities 2,250 2,700 You are given the following information: • Plant which originally cost £90,000 was sold for cash of £20,000. The profit/loss on disposal is included in expenses. Accumulated depreciation relating to the plant sold amounted to £63,000. • The debentures of £200,000 were repaid on 30 June 2018. Interest expense is included in expenses. Company issued 150,000 new shares at £1.80 per share during the year. • Dividend payment for the year was £120,000. Required Prepare the statement of cash flows fully under the indirect method. Show your supporting workings. (Total: 25 marks)

Answer rating: 100% (QA)

Cash flow statement Dec 19 Profit after tax 502 Add depr 183 Add int... View the full answer