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The following is the Income Statement of Falcon Ltd for the year ended 31 Dec 2021: 2021 £'000 Revenue 15,650 Cost of sales (8,500) Gross profit 7,150 Expenses (1,200) Interest expense (42) Profit before tax 5,908 Tax expense (1,200) Profit after tax 4,708 The following is the Statement of Financial Position of Falcon Ltd as at 31 Dec 2020 and

The following is the Income Statement of Falcon Ltd for the year ended 31 Dec 2021:

2021

£'000

Revenue

15,650

Cost of sales

(8,500)

Gross profit

7,150

Expenses

(1,200)

Interest expense

(42)

Profit before tax

5,908

Tax expense

(1,200)

Profit after tax

4,708

The following is the Statement of Financial Position of Falcon Ltd as at 31 Dec 2020 and 2021:

2020

2021

ASSETS

£'000

£'000

Non-current Assets

Land

2,650

2,670

Equipment Cost

2,000

2,620

Less: Accum.Depreciation

(400)

(770)

Net Book Value of Equipment

1,600

1,850

Current Assets

Inventories

1,350

1,400

Trade Receivables

200

156

Cash

120

5,479

Total Assets

5,920

11,555

EQUITIES AND LIABILITIES

Share Capital - £1 shares

3,000

3,500

Share premium

1,500

1,750

Revaluation Reserve

200

220

Retained Earnings

170

4,740

Current Liabilities

Trade Payables

125

80

Tax Payable

900

1,200

Interest Payable

25

20

Non- current Liabilities

Debenture Loan

0

45

Total Equity and Liabilities

5,920

11,555

You are informed that:

a)Equipment that originally cost £300,000 was sold for cash of £350,000. Accumulated depreciation relating to the plant sold amounted to £50,000. The profit/loss on disposal is included in expenses in Income Statement.

b)The company issued 500,000 ordinary shares at a price of £1.5 each.

c)Dividend payment for the year was £138,000.

d)Increase in Land's value of £20,000 relates to its revaluation during this year.

Required:

Prepare the complete statement of cash flows for Falcon Ltd for the year ended 31 Dec 2021. Show supporting workings.


Related Book For  answer-question

Core Concepts of Accounting

2nd edition

Authors: Cecily A. Raiborn

ISBN: 978-0470499474