Question: The following are the financial statement Quick Ltd. for the year ended 31 st December 2020: Quick Ltd. Income statement For year ended 31 st
The following are the financial statement Quick Ltd. for the year ended 31st December 2020:
| Quick Ltd. | |
| Income statement | |
| For year ended 31st December 2020 | |
| $000 | |
| Revenue | 1276.50 |
| Cost of sales | (907.00) |
| 369.50 | |
| Distribution costs | (62.50) |
| Administrative expenses | (132.00) |
| 175.00 | |
| Interest received | 12.50 |
| Interest paid | (37.50) |
| Profit before tax | 150.00 |
| Tax | (70.00) |
| Profit after tax | 80.00 |
| Quick Ltd. | ||
| Statement of financial position as at 31 December | ||
| 2020 | 2019 | |
| $000 | $000d | |
| ASSETS: | ||
| Non- current assets: | ||
| Property, plant and equipment | 190 | 152.5 |
| Intangible assets | 125 | 100 |
| Investments | 12.5 | |
| Current assets: | ||
| Inventories | 75 | 51 |
| Receivables | 195 | 157.5 |
| Short-term investment | 25 | |
| Cash in hand | 1 | 0.5 |
| Total assets | 611 | 474 |
| Equity and liabilities: | ||
| Equity: | ||
| Share capital | 100 | 75 |
| Share premium | 80 | 75 |
| Revolution reserve | 50 | 45.5 |
| Retained earnings | 130 | 90 |
| Non-current liabilities: | ||
| Loan | 85 | 25 |
| Current liabilities: | ||
| Trade payables | 63.5 | 59.5 |
| Bank overdraft | 42.5 | 49 |
| Tax | 60 | 55 |
| Total equity and liabilities | 611 | 474 |
Required:
Determine the Net cash flows from the operating activities of Quick Ltd for the year ended 31st December 2020. (Hint use the indirect approach for preparation of the statement of cash flows)
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