The following information relates to the draft financial statements of Samanpa Ltd. Summarised statement of financial...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information relates to the draft financial statements of Samanpa Ltd. Summarised statement of financial position as at: 31/12/2017 31/12/2016 GHS'000 GHS'000 ASSETS Non-current assets Property, plant & equipment (note 1) 19,000 25,500 Current assets 4,600 2,000 nil Inventory 12,500 Trade receivables 4,500 500 Tax refund due 1,500 33,600 Bank nil 36,500 Total assets EQUITY AND LIABILITY Equity Equity shares of GHS1 each (note i) Share deals (note ii) Retained eearnings 10,000 3,200 8,000 4,000 4,500 17,700 6,300 18,300 Non-current liabilities 10% loan note (note iii) Finance lease obligation Defferred tax provision nil 5,000 4,800 1,200 2,000 800 Current liabilities 10% loan note (note iii) 5,000 nil nil Tax 2,500 Finance lease obligation Bank overdraft 800 1,700 1,400 4,700 36,500 nil Trade payables Total equity and liabilities 4,200 33,600 Summarised income statement for the year ended: 31/12/2017 31/12/2016 GHS'000 GHS'000 40,000 (25,000) 15,000 (6,000) (600) 8,400 Revenue 55,000 Cost of sales (43,800) Gross profit Operating expenses Finance cost (note iv) Profit (loss) before tax Income tax relief (expense) Profit (loss) for the year 11,200 (12,000) (1,000) (1,800) (2,800) 5,600 700 (1,100) The following additional information is available: (i) Property, plant & equipment is made up of: 31/12/2017 GHS'000 31/12/2016 GHS'000 nil Property Leased plant 8,800 2,500 6,500 Plant 12,500 19,000 14,200 25,500 During the year, Samanpa sold its property for GHS8.5m and entered into an arrangement to rent it back from the purchaser. There was nither disposal nor addition to owned plant. The depreciation charges (to cost of sales) for the year ended 31/12/2017 were: GHS'000 Property (before disposal) Leased plant Owned plant 200 1,800 1,700 3,700 (ii) On 01/04/2017 there was a bonus issue of shares of one new share for every 10 held, credited at GHS1 per share (utilizing share deals bbalance). On 01/07/2017, there was a fully subscribed cash issue of shares at GHS1 per share. (iii) The 10% loan note is due for repayment on 31/03/2018. Samanpa is in negotiations with the loan provider to refinance the same amount for another five years. (iv) The finance costs are made up of: 31/12/2017 31/12/2016 GHS'000 GHS'000 Finance charge on lease 300 100 Overdraft interest 200 nil Loan note interest 500 500 1,000 600 Required: (i) Prepare a statement of cash flows for Samanpa Ltd for year ended 31/12/2017 in accordance with IAS 7 Statemnent of cash flows (ii) Based on the information available, advise the loan provider on the matters you would take into consideration when deciding whether to grant Samanpa a renewal of its maturing loan note. The following information relates to the draft financial statements of Samanpa Ltd. Summarised statement of financial position as at: 31/12/2017 31/12/2016 GHS'000 GHS'000 ASSETS Non-current assets Property, plant & equipment (note 1) 19,000 25,500 Current assets 4,600 2,000 nil Inventory 12,500 Trade receivables 4,500 500 Tax refund due 1,500 33,600 Bank nil 36,500 Total assets EQUITY AND LIABILITY Equity Equity shares of GHS1 each (note i) Share deals (note ii) Retained eearnings 10,000 3,200 8,000 4,000 4,500 17,700 6,300 18,300 Non-current liabilities 10% loan note (note iii) Finance lease obligation Defferred tax provision nil 5,000 4,800 1,200 2,000 800 Current liabilities 10% loan note (note iii) 5,000 nil nil Tax 2,500 Finance lease obligation Bank overdraft 800 1,700 1,400 4,700 36,500 nil Trade payables Total equity and liabilities 4,200 33,600 Summarised income statement for the year ended: 31/12/2017 31/12/2016 GHS'000 GHS'000 40,000 (25,000) 15,000 (6,000) (600) 8,400 Revenue 55,000 Cost of sales (43,800) Gross profit Operating expenses Finance cost (note iv) Profit (loss) before tax Income tax relief (expense) Profit (loss) for the year 11,200 (12,000) (1,000) (1,800) (2,800) 5,600 700 (1,100) The following additional information is available: (i) Property, plant & equipment is made up of: 31/12/2017 GHS'000 31/12/2016 GHS'000 nil Property Leased plant 8,800 2,500 6,500 Plant 12,500 19,000 14,200 25,500 During the year, Samanpa sold its property for GHS8.5m and entered into an arrangement to rent it back from the purchaser. There was nither disposal nor addition to owned plant. The depreciation charges (to cost of sales) for the year ended 31/12/2017 were: GHS'000 Property (before disposal) Leased plant Owned plant 200 1,800 1,700 3,700 (ii) On 01/04/2017 there was a bonus issue of shares of one new share for every 10 held, credited at GHS1 per share (utilizing share deals bbalance). On 01/07/2017, there was a fully subscribed cash issue of shares at GHS1 per share. (iii) The 10% loan note is due for repayment on 31/03/2018. Samanpa is in negotiations with the loan provider to refinance the same amount for another five years. (iv) The finance costs are made up of: 31/12/2017 31/12/2016 GHS'000 GHS'000 Finance charge on lease 300 100 Overdraft interest 200 nil Loan note interest 500 500 1,000 600 Required: (i) Prepare a statement of cash flows for Samanpa Ltd for year ended 31/12/2017 in accordance with IAS 7 Statemnent of cash flows (ii) Based on the information available, advise the loan provider on the matters you would take into consideration when deciding whether to grant Samanpa a renewal of its maturing loan note.
Expert Answer:
Answer rating: 100% (QA)
C ash Flow Statement of Sampanna Limited as at 31 st December 2017 OPERTING ACTIVITIES GHS000 Cash Received from Customers 52500 Cash paid to Suppliers 51200 Cash Paid against Operative Expenses 7800 ... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
Students also viewed these accounting questions
-
The following information relates to two companies, designated Company A and Company B. One of the companies is a traditional steel manufacturer. The other is a successful Internet retailer. Using...
-
The following information relates to Helena Limited: Required: Calculate the following accounting ratios for each of the five years from 30 April 2008 to 2012 inclusive: (a) Gross profit (b) Mark-up...
-
The following information relates to the Plus Factors Group plc for the years to 30 September 20X8 and 20X9: Ordinary dividends were declared as follows: Interim 1.12 pence per share (20X8, l.67p)...
-
Use the search feature on your favorite business news site on the Web (e.g., CNN, Bloomberg, or Fox News) and search for news on partnerships, LLCs, or limited partnerships. What entities did you...
-
Earlier segments of this problem have described how Mary Graham created Echo Systems on October 1, 2014. The company has been successful, and its list of customers has started to grow. To accommodate...
-
List and briefly describe what you believe are the three most important steps Hotel Paris management can take now to reduce the likelihood unions will organize more of its employees.
-
Water flows over the crest of a dam with speed \(V\) as shown in Fig. P4.44. Determine the speed if the magnitude of the normal acceleration at point (1) is to equal the acceleration of gravity,...
-
The December 31, 2011, balance sheet of Tybee Corporation is provide below (in millions). Transactions during January 2012:Paid $5 for employee wages.Collected $10 cash from customers for work...
-
Describe the evolution from giant molecular cloud to the death of a low mass (M ~ 1-1.5 solar mass) star. Make sure to use the appropriate terms (e.g. main sequence, subgiant, red giant branch,...
-
The block diagram of Fig. 1.b represents the heading control of the traditional bi-wing aircraft in Fig. 1.a. Aa Controller Engine dysunkc 100 10 Design a control system for the bi-wing aircraft to...
-
Given a sales revenue of $57,807, a variable cost of $29,992 for all goods sold, a fixed cost of $10,158 and a tax rate of 12%, what is the change in net profit after tax in percent if sales would be...
-
Trigonometry refresher: In the diagram below, length a = 4 m and length c = 8 m. b = 6.93 sin (0) = cos(0) sin (p) = tan (4) || || Please find the following quantities: = 4 = 0 = a m Q deg deg b
-
Solve using gauss jordan method 6x-y-22 = 47 = lx-2y-32-82 52-y-22 = 42
-
For f(x) = 2x-1 Complete the table: T Y -2 -1 0 2
-
One version of Polk's implementation of Clark-Wilson on UNIX systems requires transaction procedures to distinguish users in order to determine which CDIs the user may manipulate. This exercise asks...
-
3. Single Index Model for asset returns has the form Rit where = i = t = = i + RMt + Eit, Eit ~ iid N (0,0) where Rit denotes the cc return on asset i at time t, and RMt denotes the return on a...
-
What is the maturity value of a 9-year term deposit of $6978. at 5.7% compounded annually question How much interest did the deposit earn? he maturity value of the term deposit is $ ...
-
Huntingdon Capital Corp. is a competitor of Plazacorp and First Capital Realty. Huntingdon reported the following selected information (in millions):...
-
(a) When accounting for finance leases, accountants prefer to overlook legal form in favour of commercial substance. Required: Discuss the above statement in the light of the requirements of IAS 17...
-
Mr. Norman set up a new business on 1 January 20X8. He invested 50,000 in the new business on that date. The following information is available. 1. Gross profit was 20% of sales. Monthly sales were...
-
The following is the statement of financial position of Alpha Ltd as on 30 June 20X8: The following information is relevant: 1. There are contingent liabilities in respect of (i) A guarantee given to...
-
An amorphous material is: (a) Mica (b) Lead (c) Rubber (d) Glass
-
Discuss the application vernier caliper and its method of measurement.
-
In center lathe, cutting tool is fed in ____ directions with reference to the lathe axis.
Study smarter with the SolutionInn App