Below are the statements of financial position of Dickson as at 31 March 20X8 and 31 March 20X7, together with the statement of profit or loss and other comprehensive income for the year ended 31 March 20X8.
20X8 | 20X7 | |
$'000 | $'000 | |
Non-current assets | ||
Property, plant and equipment | 925 | 737 |
Development expenditure | 290 | 160 |
1,215 | 897 | |
Current assets | ||
Inventories | 360 | 227 |
Trade receivables | 274 | 324 |
Investments | 143 | 46 |
Cash | 29 | 117 |
806 | 714 | |
Total assets | 2,021 | 1,611 |
Equity | ||
Share capital – $1 ordinary shares | 500 | 400 |
Share premium | 350 | 100 |
Revaluation surplus | 160 | 60 |
Retained earnings | 229 | 255 |
1,239 | 815 | |
Non-current liabilities | ||
6% debentures | 150 | 100 |
Finance lease liabilities | 100 | 80 |
Deferred tax | 48 | 45 |
298 | 225 | |
Current liabilities | ||
Trade payables | 274 | 352 |
Finance lease liabilities | 17 | 12 |
Current tax | 56 | 153 |
Debenture interest | 5 | – |
Bank overdraft | 132 | 54 |
__ 484 | 571 | |
Total equity and liabilities | 2,021 | 1,611 |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||
$'000 | ||
Revenue | 1,476 | |
Cost of sales | -962 | |
Gross profit | 514 | |
Other expenses | -157 | |
Finance costs | -15 | |
Profit before tax | 342 | |
Income tax expense | -162 | |
Profit for the year | 180 | |
Other comprehensive income: | ||
Gain on revaluation of property, plant and equipment | 100 | |
Total comprehensive income for the year | 280 |
Notes:
- During 20X8, amortization of $60,000 was charged on development projects.
- During 20X8 items of property, plant and equipment with a carrying amount of $103,000 were sold for $110,000. Profit on sale was netted off against 'other expenses'.
Depreciation charged in the year on property, plant and equipment totalled $57,000. Dickson purchased $56,000 of property, plant and equipment by means of finance leases, payments being made in arrears on the last day of each accounting period.
- The current asset investments are government bonds and management has decided to class them as cash equivalents.
- The new debentures were issued on 1 April 20X7. Finance cost includes debenture interest and finance lease finance charges only.
- During the year Dickson made a 1 for 8 bonus issue, capitalizing its retained earnings, followed by a rights issue.
Requirements:
a
(i) Prepare a statement of cash flows for Dickson in accordance with IAS 7 using the indirect method.
Marks: 20
Answers submitted
Created by | Ref | Marking | Action |
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a 5642 |
20 | ||
a 7916 |
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a 7918 |
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a 7914 |
20 | ||
a 6982 |
20 | ||
a 6122 |
20 | ||
a 5640 |
20 | ||
a 5904 |
20 | ||
a 5646 |
20 | ||
a 5123 |
20 | ||
a 4129 |
20 | ||
a 897 |
20 | ||
a 4035 |
20 | ||
a 4013 |
20 | ||
a 2437 |
20 | ||
a 2417 |
20 | ||
a 885 |
20 |
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