The following are extracts from the statement of comprehensive income and the statements of financial position...

 

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The following are extracts from the statement of comprehensive income and the statements of financial position of Croft Ltd ('Croft'). Statement of comprehensive income year to 30 April 2013 £ Turnover 4,200,000 Cost of sales (2,870,000) Gross profit 1,330,000 Distribution costs (280,000) Administrative expenses (473,000) Operating profit 577,000 Interest (23,000) Profit before tax 554,000 Statement of financial position as at 30 April 2013 2012 Current assets Inventory 318,000 292,000 Trade receivables 416,000 389,000 Cash and cash equivalents 71,000 25,000 Current liabilities Trade payables 373,000 320,000 Accruals 61,000 85,000 Notes (1) Operating profit includes a gain of £5,000 on the disposal of a non-current asset and £12,000 amor- tization of a government grant. These were deducted in arriving at net administrative expenses. (2) Accruals at 30 April 2013 includes £16,000 accrued interest (for 2012 the amount was £14,000). (3) Cost of sales includes depreciation of £215,000. Required: Prepare the cash generated from operating activities under the indirect method. Show clearly all supporting workings. The following are extracts from the statement of comprehensive income and the statements of financial position of Croft Ltd ('Croft'). Statement of comprehensive income year to 30 April 2013 £ Turnover 4,200,000 Cost of sales (2,870,000) Gross profit 1,330,000 Distribution costs (280,000) Administrative expenses (473,000) Operating profit 577,000 Interest (23,000) Profit before tax 554,000 Statement of financial position as at 30 April 2013 2012 Current assets Inventory 318,000 292,000 Trade receivables 416,000 389,000 Cash and cash equivalents 71,000 25,000 Current liabilities Trade payables 373,000 320,000 Accruals 61,000 85,000 Notes (1) Operating profit includes a gain of £5,000 on the disposal of a non-current asset and £12,000 amor- tization of a government grant. These were deducted in arriving at net administrative expenses. (2) Accruals at 30 April 2013 includes £16,000 accrued interest (for 2012 the amount was £14,000). (3) Cost of sales includes depreciation of £215,000. Required: Prepare the cash generated from operating activities under the indirect method. Show clearly all supporting workings.

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Cash Generated from Operating Activities Particulars Year ended A... View the full answer