17. Ashton plc's income statement for the year ended 31 December 2020 and statements of financial position at 31 December 2019 and 2020 were as follows: Additional information for the year ended 31 December 2020 is as follows: i) During the year, the company sold machinery that originally costs £40,000 for £26,000. The accumulated depreciation for this machinery sold was £15,000. ii) Dividends of £18,000 was paid. Ashton: Income Statement for the years ended 31 December 2019 and 2020 2019 2020 £'000 72 £000 76 Required: Profit before interest and tax Interest paid (3) 69 (4) 72 (a) Prepare a Statement of Cash Flows for Ashton plc for the year ended 31 December 2020 in accordance with IAS 7 'Statement of Cash Flow.' Profit before tax Tax (16) (14) 55 Profit after tax 56 Ashton: Statement of Financial Position as at 31 December for 2019 and 2020 2020 £'000 2019 £'000 Non Current Assets Cost Accumulated depreciation 160 230 (60) (44) 116 Net book value 170 Current Assets Inventory Trade receivables 20 25 18 15 Cash 21 27 67 237 59 TOTAL ASSETS 175 Equity £1 Ordinary shares Retained profits 51 63 43 79 94 142 Non Current Liabilities Bank loan 30 32 Current Liabilities Trade payables Taxation Dividend 21 27 12 16 18 20 51 63 TOTAL EQUITY & LIABILITIES 175 237
17. Ashton plc's income statement for the year ended 31 December 2020 and statements of financial position at 31 December 2019 and 2020 were as follows: Additional information for the year ended 31 December 2020 is as follows: i) During the year, the company sold machinery that originally costs £40,000 for £26,000. The accumulated depreciation for this machinery sold was £15,000. ii) Dividends of £18,000 was paid. Ashton: Income Statement for the years ended 31 December 2019 and 2020 2019 2020 £'000 72 £000 76 Required: Profit before interest and tax Interest paid (3) 69 (4) 72 (a) Prepare a Statement of Cash Flows for Ashton plc for the year ended 31 December 2020 in accordance with IAS 7 'Statement of Cash Flow.' Profit before tax Tax (16) (14) 55 Profit after tax 56 Ashton: Statement of Financial Position as at 31 December for 2019 and 2020 2020 £'000 2019 £'000 Non Current Assets Cost Accumulated depreciation 160 230 (60) (44) 116 Net book value 170 Current Assets Inventory Trade receivables 20 25 18 15 Cash 21 27 67 237 59 TOTAL ASSETS 175 Equity £1 Ordinary shares Retained profits 51 63 43 79 94 142 Non Current Liabilities Bank loan 30 32 Current Liabilities Trade payables Taxation Dividend 21 27 12 16 18 20 51 63 TOTAL EQUITY & LIABILITIES 175 237
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare a
Transcribed Image Text:Additional information for the year ended 31 December 2020 is as follows:
17. Ashton plc's income statement for the year ended 31 December 2020 and
statements of financial position at 31 December 2019 and 2020 were as follows:
i) During the year, the company sold machinery that originally costs £40,000 for
£26,000. The accumulated depreciation for this machinery sold was £15,000.
ii) Dividends of £18,000 was paid.
Ashton: Income Statement for the vears ended 31 December 2019 and 2020
2019
2020
£'000
£'000
Required:
Profit before interest and tax
Interest paid
72
76
(3)
(4)
(a) Prepare a Statement of Cash Flows for Ashton plc for the year ended 31
Profit before tax
69
72
December 2020 in accordance with IAS 7 'Statement of Cash Flow.'
Tax
(14)
(16)
Profit after tax
55
56
Ashton: Statement of Financial Position as at 31 December for 2019 and 2020
2019
2020
£'000
£'000
Non Current Assets
Cost
Accumulated depreciation
160
230
(44)
(60)
Net book value
116
170
Current Assets
Inventory
20
25
Trade receivables
18
15
Cash
21
27
59
67
TO TAL ASSETS
175
237
Equity
£1 Ordinary shares
Retained profits
51
63
43
79
94
142
Non Current Liabilities
Bank loan
30
32
Current Liabilities
Trade payables
21
27
Taxation
12
16
Dividend
18
20
51
63
TO TAL EQUITY & LIABILITIES
175
237
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