The following information is available on the financial statements of Tulip PLC for 31/12/2020 and 31/12/2021. The
Question:
The following information is available on the financial statements of Tulip PLC for 31/12/2020 and 31/12/2021. The net profit for 31/12/2021 is £10,000. Tulip PLC Statements
Tulip PLC Statements of Financial Position | ||
31/12/2020 | 31/12/2021 | |
£ 000 | £ 000 | |
Non current assets | ||
investment | 0 | 100 |
Machinery at cost | 300 | 300 |
Less depreciation | -80 | -100 |
220 | 300 | |
Current assets | ||
Inventory | 160 | 190 |
Trade receivable | 220 | 110 |
Cash at bank | 0 | 10 |
380 | 310 | |
Total assets | 600 | 610 |
Equity | ||
Share capital | 350 | 350 |
Retained earning | 30 | 40 |
380 | 390 | |
Non current liabilities | ||
Borrowing (9% loans) | 0 | 60 |
Current liabilities | ||
Bank overdraft | 20 | 0 |
Trade payable | 200 | 160 |
Taxation | 0 | 0 |
220 | 160 | |
Total equity and liabilities | 600 | 610 |
Required:
a) Prepare the statement of cash flows for Tulip PLC for 31/12/2021.
b) Discuss what the cash flow statement tells the managers of Tulip PLC?
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly