document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1175356>Question 1175356</A>: <I><SPAN STYLE=\"word-break: break-all;\"> H. LTD consolidated financial statement on 31 December 2020 was as follows;<BR>\n" );
document.write( "Credit sales 					                                                       1300 000<BR>\n" );
document.write( "Cash sales 					                                                        300 000<BR>\n" );
document.write( "Cost of goods sold 				                                                      1 600 000<BR>\n" );
document.write( "Opening stock 				      10 000<BR>\n" );
document.write( "Purchases 					1 300 000<BR>\n" );
document.write( "						1 310 000<BR>\n" );
document.write( "Closing stock 						(20 000)			    (1 290 000)<BR>\n" );
document.write( "Gross profit									        310 000<BR>\n" );
document.write( "Operating expenses<BR>\n" );
document.write( "Insurance 					9 000<BR>\n" );
document.write( "Stationery					10 000<BR>\n" );
document.write( "Salaries/wages					75 000<BR>\n" );
document.write( "Carriage outwards				3 000<BR>\n" );
document.write( "Provisions for bad debts			4 000					<BR>\n" );
document.write( "Depreciation on non current assets		6 250<BR>\n" );
document.write( "Rent/rates					40 000				147 250<BR>\n" );
document.write( "Net profit before tax 								162 750<BR>\n" );
document.write( "Company tax 									(48825)<BR>\n" );
document.write( "Net profit after tax								113925	<BR>\n" );
document.write( "Ordinary dividends paid							(20 000)<BR>\n" );
document.write( "Net profits c/f									93 925\r<BR>\n" );
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document.write( "Statement of Financial position as at 31 December 2020<BR>\n" );
document.write( "Assets 				2019 						2020<BR>\n" );
document.write( "Non current <BR>\n" );
document.write( "Land/building			177 500					       216 250<BR>\n" );
document.write( "Account depreciation 		(5500)   172 000						9250    20 7000<BR>\n" );
document.write( "Plant/machinery 		162 500					        187 500<BR>\n" );
document.write( "Account depreciation		4250    158 250 				           (6 125)   18 1375<BR>\n" );
document.write( "Fixtures/fittings 		25 000 						32 500<BR>\n" );
document.write( "account dep			(3625)   21 375					(4250)   28 250<BR>\n" );
document.write( "						351 625						416 625\r<BR>\n" );
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document.write( "Goodwill 					60 000						50 000<BR>\n" );
document.write( "Current assets<BR>\n" );
document.write( "Inventory			9350							  79 725         <BR>\n" );
document.write( "Accounts receivables		12 750							24 225<BR>\n" );
document.write( "Prepayments			2500			                                   20 000			<BR>\n" );
document.write( "Preliminary expenses		2000							1 500<BR>\n" );
document.write( "Share issue expenses 		3000							2000<BR>\n" );
document.write( "Cash at bank			2 500							7650<BR>\n" );
document.write( "Cash at hand			375    		32475				325		37 700<BR>\n" );
document.write( "							444 100						504325\r<BR>\n" );
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document.write( "Equity/liabilities<BR>\n" );
document.write( "Ordinary share capital		 100 000					135 900<BR>\n" );
document.write( "Retained profits		75 000						168 925<BR>\n" );
document.write( "Non current liabilities								<BR>\n" );
document.write( "Long term loan 		173 600				             40 000<BR>\n" );
document.write( "Current liabilities<BR>\n" );
document.write( "Accounts payable         	15 500 					14 500<BR>\n" );
document.write( "Taxation 			40 000						100 000<BR>\n" );
document.write( "Dividends			20 000						20 000<BR>\n" );
document.write( "Accruals			20 000						25 000<BR>\n" );
document.write( "					444 100					504 325\r<BR>\n" );
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document.write( "ADDITIONAL INFORMATION<BR>\n" );
document.write( "(a) The goodwill was impaired, preliminary expenses and share issue expenses were written off.<BR>\n" );
document.write( "Required:<BR>\n" );
document.write( "Draw up a consolidated statement of cash flows for the year ended December 2020 using the indirect method.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #800958 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52784)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=800958\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
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document.write( "This forum specialization, goal and target is to help school, college and university students in their studies in Math.\r<BR>\n" );
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document.write( "We do not consult in Finance.\r<BR>\n" );
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document.write( "Therefore, you spend your time for nothing posting such problems/assignments as this current post.\r<BR>\n" );
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document.write( "You may post your \"THANKS\" to me for my warning, which may save your time in the future.\r<BR>\n" );
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document.write( "I am open to accept your \"THANKS\".\r<BR>\n" );
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