Zeta Ltd is a specialty retailer. The given information includes the balance sheet and income statement...

  

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Zeta Ltd is a specialty retailer. The given information includes the balance sheet and income statement of the company. There are some additional information including: Assume there are no sale of property, plant and equipment during the period The change in Accumulated Other Comprehensive Income (AOCI) is related to revaluation of investments in available for sale securities to market value. The remaining changes in Investments in Securities result from purchases and sales. Assume that the sales occurred at no gain or loss. Depreciation expense for year 2 is 420m The company has paid dividend of 807m during the period Income Statements (amounts in millions). Sales revenue Cost of goods sold Selling and Admin Interest Expense Other Income Income tax expense (tax rate at 35%) Net Income Year 4 21,176 -8,764 -10,220 -1 300 -928 1,563 Balance sheets (amounts in millions dollar) Assets Cash Accounts Receivable Inventories Prepayments Total current assets PPE (net) Investments Intangible assets Total assets Liabilities & Shareholders' Equity Accounts Payable Short term borrowing Other current liabilities Total current liabilties Long term debts Deferred tax liabilities Total liabilities Shareholders' Equity Common stock litional Paid-in Capital Retained Earnings Cumulative other comprehensive income Total equity Total liabilities and owners equity Year 3 804 460 1,372 412 3,048 5,792 596 1,684 11,120 676 512 1,112 2,300 820 516 3,636 400 3,584 3,440 60 7,484 11,120 Required: Prepare the Statement of Cashflows for Zeta Ltd for Year 4. Year 4 1,196 560 1,692 540 3,988 6,204 1,416 1,952 13,560 792 816 1,368 2,976 1,536 748 5,260 400 3,584 4,196 120 8,300 13,560 Zeta Ltd is a specialty retailer. The given information includes the balance sheet and income statement of the company. There are some additional information including: Assume there are no sale of property, plant and equipment during the period The change in Accumulated Other Comprehensive Income (AOCI) is related to revaluation of investments in available for sale securities to market value. The remaining changes in Investments in Securities result from purchases and sales. Assume that the sales occurred at no gain or loss. Depreciation expense for year 2 is 420m The company has paid dividend of 807m during the period Income Statements (amounts in millions). Sales revenue Cost of goods sold Selling and Admin Interest Expense Other Income Income tax expense (tax rate at 35%) Net Income Year 4 21,176 -8,764 -10,220 -1 300 -928 1,563 Balance sheets (amounts in millions dollar) Assets Cash Accounts Receivable Inventories Prepayments Total current assets PPE (net) Investments Intangible assets Total assets Liabilities & Shareholders' Equity Accounts Payable Short term borrowing Other current liabilities Total current liabilties Long term debts Deferred tax liabilities Total liabilities Shareholders' Equity Common stock litional Paid-in Capital Retained Earnings Cumulative other comprehensive income Total equity Total liabilities and owners equity Year 3 804 460 1,372 412 3,048 5,792 596 1,684 11,120 676 512 1,112 2,300 820 516 3,636 400 3,584 3,440 60 7,484 11,120 Required: Prepare the Statement of Cashflows for Zeta Ltd for Year 4. Year 4 1,196 560 1,692 540 3,988 6,204 1,416 1,952 13,560 792 816 1,368 2,976 1,536 748 5,260 400 3,584 4,196 120 8,300 13,560

Answer rating: 100% (QA)

To prepare the Statement of Cash Flows for Zeta Ltd for Year 4 we need to analyze the changes in the companys cash and cash equivalents from the Year ... View the full answer