The following are extracts from the financial statements of National Bakery and one of its wholly...

  

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The following are extracts from the financial statements of National Bakery and one of its wholly owned subsidiaries, HTB Bun, the shares in which were acquired on 31 October 20X2. STATEMENTS OF FINANCIAL POSITION Non-current assets Property, plant & equipment Goodwill Investment in associates Current assets Inventories Receivables Bank balances and cash Equity Share capital Share premium Retained earnings Non-current liabilities Loans Deferred tax Current liabilities Payables Bank overdrafts Current tax payable National Bakery and Subsidiaries 31 December 20X2 $'000 4,764 42 2,195 7,001 1,735 2,658 43 4,436 11,437 4,896 216 2,540 7,652 1348 111 1,459 1,915 176 235 2,326 11,437 31 December 20X1 $'000 3,685 2,175 5,860 1,388 2,436 77 3,901 9,761 4,776 2,063 6,839 653 180 833 1,546 343 200 2,089 9,761 HTB Bun 31 October 20X2 $'000 694 694 306 185 7 498 1,192 400 644 Page 2 of 8 1,044 148 148 1,192 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20X2 Profit before interest and tax Finance costs - Share of profit of associates Profit before tax Income tax expense Profit/Total Comprehensive Income for the year Attributable to: Owners of the parent Non-controlling interests The following information is also given: $'000 546 120 (d) No write down of goodwill was required during the period. 666 126 540 540 0 (a) The consolidated figures at 31 December 20X2 include HTB Bun. Page 3 of 8 (b) The amount of depreciation on property, plant and equipment during the year was $78,000. There were no disposals. (c) The cost on 31 October 20X2 of the shares in HTB Bun was $1,086,000 comprising the issue of $695,000 unsecured loan stock at par, 120,000 ordinary shares of $1 each and $55,000 in cash. (e) Total dividends paid by National Bakery (parent) during the period amounted to $63,000. Required: Prepare a statement of cash flows for National Bakery and subsidiaries for the year ended 31 December 20X2 using the indirect method. (20 Marks) The following are extracts from the financial statements of National Bakery and one of its wholly owned subsidiaries, HTB Bun, the shares in which were acquired on 31 October 20X2. STATEMENTS OF FINANCIAL POSITION Non-current assets Property, plant & equipment Goodwill Investment in associates Current assets Inventories Receivables Bank balances and cash Equity Share capital Share premium Retained earnings Non-current liabilities Loans Deferred tax Current liabilities Payables Bank overdrafts Current tax payable National Bakery and Subsidiaries 31 December 20X2 $'000 4,764 42 2,195 7,001 1,735 2,658 43 4,436 11,437 4,896 216 2,540 7,652 1348 111 1,459 1,915 176 235 2,326 11,437 31 December 20X1 $'000 3,685 2,175 5,860 1,388 2,436 77 3,901 9,761 4,776 2,063 6,839 653 180 833 1,546 343 200 2,089 9,761 HTB Bun 31 October 20X2 $'000 694 694 306 185 7 498 1,192 400 644 Page 2 of 8 1,044 148 148 1,192 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 20X2 Profit before interest and tax Finance costs - Share of profit of associates Profit before tax Income tax expense Profit/Total Comprehensive Income for the year Attributable to: Owners of the parent Non-controlling interests The following information is also given: $'000 546 120 (d) No write down of goodwill was required during the period. 666 126 540 540 0 (a) The consolidated figures at 31 December 20X2 include HTB Bun. Page 3 of 8 (b) The amount of depreciation on property, plant and equipment during the year was $78,000. There were no disposals. (c) The cost on 31 October 20X2 of the shares in HTB Bun was $1,086,000 comprising the issue of $695,000 unsecured loan stock at par, 120,000 ordinary shares of $1 each and $55,000 in cash. (e) Total dividends paid by National Bakery (parent) during the period amounted to $63,000. Required: Prepare a statement of cash flows for National Bakery and subsidiaries for the year ended 31 December 20X2 using the indirect method. (20 Marks)

Answer rating: 100% (QA)

Answer Statement of cash flows For the year ended 31 December 20X2 000 000 Cash from operating activ... View the full answer