Practice Questions: IAS 7 (Statement of Cashflows)

-

                                                                      Example # 1

The following information has been extracted from the financial statements of Trango Limited for the year ended 31 December 2015.
Statement of comprehensive income for the year ended 31 December 2015 
                             Rs.
Sales                                                                                                      905,000
Cost of sales                                                                                       (311,000)
Gross profit                                                                                        594,000
Loss on disposal of non-current asset                                                (9,000)
Wages and salaries                                                                             (266,000)
Other expenses (including depreciation Rs.46,000)                          (193,000) 
                       126,000
Interest charges                                                                                  (24,000)
Profit before tax                                                                                 102,000
Tax on profit                                                                                       (38,000)
Profit after tax                                                                                      64,000

The asset disposed of had a carrying amount of Rs. 31,000 at the time of the sale.

Extracts from the statements of financial position: 
At  1 January 2015                            At  31 December 2015 
   Rs.                                                           Rs.
Trade receivables                                  157,000                                                 173,000
Inventory                                              42,000                                                  38,000
Trade payables                                      43,600                                                   35,700
Accrued wages and salaries                   4,000                                                      4,600
Accrued interest charges                        11,200                                                   10,000
Tax payable                                            45,000                                                   41,000

Required Present the cash flows from operating activities as they would be presented in a statement of cash flows.

                                                                      Example # 2

Hot Sauce Limited summarised final accounts are as follows
Statements of financial position 
         31 December 2014                           31 December 2015 
         Rs.000        Rs.000                             Rs.000        Rs.000
Non-current assets:       
Plant and machinery at cost                                  2,700                                                      3,831
Accumulated depreciation                                    (748)                                                     (1,125)
Carrying amount                                                    1,952                                                      2,706

Current assets:       
Inventory                                              203                                                     843  
Receivables                                          147                                                     184  
Bank                                                      51                                                           -_     
                   401                                                         1,027
Total assets                                                           2,353                                                      3,733

Ordinary share capital (Rs1 shares)                       740                                                        940
Share premium account                                            0                                                           100
Retained earnings                                                    671                                                      1,034   
                    1,411                                                     2,074
Non-current liabilities:       
Loans                                                                       320                                                        150

Current liabilities:        
Bank overdraft                                           0                                                      766  
Trade payables and accruals                   152                                                     141  
Current taxation                                      470                                                     602     
                                622                                                       1,509
Total equity and liabilities                                      2,353                                                     3,733
  
Statement of comprehensive income for year ended 31 December 2015  
 R.s 000
Profit before tax                                                                1,195
Taxation                                                                             (602)
Profit after tax                                                                     593

Dividend payments during the year were Rs.230,000.
The following information is also available:
(1) The only new loan raised during the year was a five-year bank loan amounting to Rs.65,000.
(2) Interest charged during the year was Rs.156,000. Interest accrued was Rs.24,000 last year and Rs.54,000 this year.
(3) Depreciation charged during the year amounted to Rs.401,000. This does not include any profit or loss on disposal of non-current assets.
(4) During the year plant which originally cost Rs.69,000 was disposed of for Rs.41,000.
(5) During the year the company issued 200,000 new shares.

Required Prepare a statement of cash flows.

                                                                      Example # 3

Abida made a net profit of Rs. 256,800 for the year ended June 30, 2015 after charging depreciation of Rs. 17,500 and loss on disposal of furniture of Rs. 6,800. The sale proceeds of the furniture were Rs. 12,000. During the year, the net book value of non-current assets decreased by Rs. 7,400; receivables increased by Rs. 11,700; inventories decreased by Rs. 21,600 and creditors increased by Rs. 8,900. A long-term loan of Rs. 75,000 was repaid during the year and Abida withdrew Rs. 120,000 for his own use.

Required: Prepare the statement of cash flows for the year ended June 30, 2015.

Comments

  1. Anonymous29 January 2022 at 02:04

    I'm Helena Julio from Ecuador,I want to talk good about Mr Pedro on this topic.
    Mr Pedro and his loan company gives me financial support when all bank in my city turned down my request to grant me a loan of 500,000.00 USD, I tried all i could to get a loan from my banks here in Ecuador but they all turned me down because my credit was low but with god grace I came to know about Mr Pedro on a loan platform so I decided to give a try to apply for the loan. With God willing they granted me a loan of 500,000.00 USD. The loan request that my banks here in Ecuador have turned me down for, it was really awesome doing business with them and my business is going well now. Email/ Contact if you wish to apply for a loan from them.
    pedroloanss@gmail.com

    ReplyDelete

Post a Comment

Popular posts from this blog

Practice Questions: IAS 36 (Impairment of Assets)

-
Example # 1 A company owns a car that was involved in an accident at the year end. It is barelyuseable, so the value in use is estimated at $1,000. However, the car is a classic and thereis a demand for the parts. This results in a fair value less costs to sell of $3,000. The opening carrying value was $8,000 and the car was estimated to have a life of eight years from the start of the year. Required : Identify the recoverable amount of the car and any impairment required.                                                           Example # 2 An entity owns a property which was originally purchased for $300,000. The property has been revalued to $500,000 with the revaluation of $200,000 being...
Read more

Practice Questions: IAS 23 (Borrowing Costs)

-
Example # 1 ADAMs has arranged a loan with Swedbank, to enable him to build a football stadium in Vilnius. He will be allowed to borrow up to $300,000,000 to be used in such amounts and at such times as he requires the funds. The bank charges interest at the rate of 7% per annum and ADAMs is able to invest any surplus funds at the rate of 5% per annum. He borrowed $100,000,000 on 1 January 2008 and immediately invested $50,000,000. On 28 Feb he withdrew $30,000,000 from the funds invested. On 1 April, he borrowed a further $120,000,000 of which he invested $70,000,000. On 31 May he spent $60,000,000 out of the funds invested. On 31 August he borrowed a further $80,000,000, spent $20,000,000 immediately and invested the remainder. On 1 November work was stopped because of a strike by the workforce. The work recommenced on 1 January 2009 and ADAMs closed all investment accounts and   spent the rest of the loan in completing the project which was ready for final inspection b...
Read more