TOMAH Limited is a public listed manufacturing company. Its draft summarised financial statements for the year...
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TOMAH Limited is a public listed manufacturing company. Its draft summarised financial statements for the year ended 30 September 2018 (and 2017 comparatives) are: Statements of profit or loss and other comprehensive income for the year ended 30 September: Revenue Cost of sales Gross profit Distribution costs Administrative expenses Investment properties Finance costs Profit before taxation Income tax Profit for the year Other comprehensive income - rentals received fair value changes 2018 GH'000 44,900 31,300 13,600 (2,400) (7,850) 350 (700) (600) 2,400 (600) 1,800 1,300 2017 GH '000 44,000 29,000 15,000 (2,100) (5,900) 400 500 (600) 7,300 (1,700) 5,600 1,000 Total comprehensive income Statements of financial position as at 30 September: 2018 Assets Non-current assets Property, plant and equipment Investment properties Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Equity Equity shares of GHel each Revaluation reserve Retained earnings Non-current liabilities 12% loan notes Current liabilities Trade payables Accrued finance costs Bank overdraft Current tax payable GH₂'000 GHe'000 2,300 3,000 0 500 4,200 100 200 500 26,700 4,100 30,800 5,300 36,100 17,200 1,200 7,700 26,100 5,000 5,000 36,100 6,600 2017 GH₂'000 GH₂'000 3,100 3,400 300 3,900 50 0 1,850 25,200 5,000 30,200 6,800 37,000 17,000 2,500 8,700 28,200 3,000 5,800 37,000 The following information is relevant: i) On 1 July 2018, TOMAH Limited acquired a new investment property at a cost of GH1,400,000. On this date, it also transferred one of its other investment properties to property, plant and equipment at its fair value of GHe1,600,000 as it became owner- occupied on that date. TOMAH adopts the fair value model for its investment properties. ii) TOMAH also has a policy of revaluing its other properties (included as property, plant and equipment) to market value at the end of each year. Other comprehensive income and the revaluation reserve both relate to these properties. iii) Depreciation of property, plant and equipment during the year was GH$1,500,000. An item of plant with a carrying amount of GHe2,300,000 was sold for GHe1,800,000 during September 2018. Required: Prepare the statement of cash flows for TOMAH Ltd for the year ended 30 September 2018 in accordance with IAS 7 Statement of Cash Flows using the indirect method. (15 marks) TOMAH Limited is a public listed manufacturing company. Its draft summarised financial statements for the year ended 30 September 2018 (and 2017 comparatives) are: Statements of profit or loss and other comprehensive income for the year ended 30 September: Revenue Cost of sales Gross profit Distribution costs Administrative expenses Investment properties Finance costs Profit before taxation Income tax Profit for the year Other comprehensive income - rentals received fair value changes 2018 GH'000 44,900 31,300 13,600 (2,400) (7,850) 350 (700) (600) 2,400 (600) 1,800 1,300 2017 GH '000 44,000 29,000 15,000 (2,100) (5,900) 400 500 (600) 7,300 (1,700) 5,600 1,000 Total comprehensive income Statements of financial position as at 30 September: 2018 Assets Non-current assets Property, plant and equipment Investment properties Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Equity Equity shares of GHel each Revaluation reserve Retained earnings Non-current liabilities 12% loan notes Current liabilities Trade payables Accrued finance costs Bank overdraft Current tax payable GH₂'000 GHe'000 2,300 3,000 0 500 4,200 100 200 500 26,700 4,100 30,800 5,300 36,100 17,200 1,200 7,700 26,100 5,000 5,000 36,100 6,600 2017 GH₂'000 GH₂'000 3,100 3,400 300 3,900 50 0 1,850 25,200 5,000 30,200 6,800 37,000 17,000 2,500 8,700 28,200 3,000 5,800 37,000 The following information is relevant: i) On 1 July 2018, TOMAH Limited acquired a new investment property at a cost of GH1,400,000. On this date, it also transferred one of its other investment properties to property, plant and equipment at its fair value of GHe1,600,000 as it became owner- occupied on that date. TOMAH adopts the fair value model for its investment properties. ii) TOMAH also has a policy of revaluing its other properties (included as property, plant and equipment) to market value at the end of each year. Other comprehensive income and the revaluation reserve both relate to these properties. iii) Depreciation of property, plant and equipment during the year was GH$1,500,000. An item of plant with a carrying amount of GHe2,300,000 was sold for GHe1,800,000 during September 2018. Required: Prepare the statement of cash flows for TOMAH Ltd for the year ended 30 September 2018 in accordance with IAS 7 Statement of Cash Flows using the indirect method. (15 marks)
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SOLUTION Cash flows from operating activities in GH 000s in GH 000s Profit before tax 2400 Adjustmen... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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