Question 1175356: H. LTD consolidated financial statement on 31 December 2020 was as follows;
Credit sales 1300 000
Cash sales 300 000
Cost of goods sold 1 600 000
Opening stock 10 000
Purchases 1 300 000
1 310 000
Closing stock (20 000) (1 290 000)
Gross profit 310 000
Operating expenses
Insurance 9 000
Stationery 10 000
Salaries/wages 75 000
Carriage outwards 3 000
Provisions for bad debts 4 000
Depreciation on non current assets 6 250
Rent/rates 40 000 147 250
Net profit before tax 162 750
Company tax (48825)
Net profit after tax 113925
Ordinary dividends paid (20 000)
Net profits c/f 93 925
Statement of Financial position as at 31 December 2020
Assets 2019 2020
Non current
Land/building 177 500 216 250
Account depreciation (5500) 172 000 9250 20 7000
Plant/machinery 162 500 187 500
Account depreciation 4250 158 250 (6 125) 18 1375
Fixtures/fittings 25 000 32 500
account dep (3625) 21 375 (4250) 28 250
351 625 416 625
Goodwill 60 000 50 000
Current assets
Inventory 9350 79 725
Accounts receivables 12 750 24 225
Prepayments 2500 20 000
Preliminary expenses 2000 1 500
Share issue expenses 3000 2000
Cash at bank 2 500 7650
Cash at hand 375 32475 325 37 700
444 100 504325
Equity/liabilities
Ordinary share capital 100 000 135 900
Retained profits 75 000 168 925
Non current liabilities
Long term loan 173 600 40 000
Current liabilities
Accounts payable 15 500 14 500
Taxation 40 000 100 000
Dividends 20 000 20 000
Accruals 20 000 25 000
444 100 504 325
ADDITIONAL INFORMATION
(a) The goodwill was impaired, preliminary expenses and share issue expenses were written off.
Required:
Draw up a consolidated statement of cash flows for the year ended December 2020 using the indirect method.
Answer by ikleyn(52879)   (Show Source):
You can put this solution on YOUR website! .
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