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Additional information (1) An analysis of property, plant and equipment shows the following. Extracts from the financial statements for Roxy plc for the years ended 30 June are as follows: Statements of financial position as at 30 June 20X8 20X7 20X8 20X7 3. Building Cost Depreciation ASSETS Non-current assets (4,000) (1,000) Property, plant and equipment 20,750 14,000 18,000 11,000 Plant and machinery Cost Depreciation Current assets Inventories Trade and other receivables 16,000 9,950 11,000 2,700 1,300 (2,250) (2,000) 2,750 3,000 Government bonds 1,000 20,750 14,000 26,950 15,000 Total assets 47,700 29,000 EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings (2) Machinery with a carrying amount of £250 was sold at the beginning of 20X8 for £350. This machinery had originally cost £1,000. 3,500 13,950 17,450 3,000 3,800 6,800 (3) The accruals are in respect of interest payable. (4) During the year a bonus issue of 1 for 6 was made on the ordinary shares in issue at 30 June 20X7, Non-current liabilities Loans 6,000 10,000 utilising retained profits. Current liabilities (5) The government bonds are highly liquid and management has decided to classify them as cash equivalents. Bank overdrafts 12,000 Trade and other payables Accruals Provision Tax liabilities 8,000 700 11,000 200 (6) Included in trade payables at 30 June 20X8 is £2,500 in respect of the purchase of non-current assets. 1,750 1,800 1,000 24,250 12,200 (7)The provision relates to a former employee's unfair dismissal claim. 47,700 29,000 Requirement Statements of profit or loss for the year ended 30 June (extracts) Prepare a statement of cash flows for the year ended 30 June 20X8 in accordance with IAS 7, Statement of Cash Flows. 20X8 20X7 Profit from operations Finance cost Profit before tax Income tax expense Profit for the year 5,900 (1,400) 4,500 (2,000) (1,500) (1,000) 12,650 10,650 3,000

Additional information (1) An analysis of property, plant and equipment shows the following. Extracts from the financial statements for Roxy plc for the years ended 30 June are as follows: Statements of financial position as at 30 June 20X8 20X7 20X8 20X7 3. Building Cost Depreciation ASSETS Non-current assets (4,000) (1,000) Property, plant and equipment 20,750 14,000 18,000 11,000 Plant and machinery Cost Depreciation Current assets Inventories Trade and other receivables 16,000 9,950 11,000 2,700 1,300 (2,250) (2,000) 2,750 3,000 Government bonds 1,000 20,750 14,000 26,950 15,000 Total assets 47,700 29,000 EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings (2) Machinery with a carrying amount of £250 was sold at the beginning of 20X8 for £350. This machinery had originally cost £1,000. 3,500 13,950 17,450 3,000 3,800 6,800 (3) The accruals are in respect of interest payable. (4) During the year a bonus issue of 1 for 6 was made on the ordinary shares in issue at 30 June 20X7, Non-current liabilities Loans 6,000 10,000 utilising retained profits. Current liabilities (5) The government bonds are highly liquid and management has decided to classify them as cash equivalents. Bank overdrafts 12,000 Trade and other payables Accruals Provision Tax liabilities 8,000 700 11,000 200 (6) Included in trade payables at 30 June 20X8 is £2,500 in respect of the purchase of non-current assets. 1,750 1,800 1,000 24,250 12,200 (7)The provision relates to a former employee's unfair dismissal claim. 47,700 29,000 Requirement Statements of profit or loss for the year ended 30 June (extracts) Prepare a statement of cash flows for the year ended 30 June 20X8 in accordance with IAS 7, Statement of Cash Flows. 20X8 20X7 Profit from operations Finance cost Profit before tax Income tax expense Profit for the year 5,900 (1,400) 4,500 (2,000) (1,500) (1,000) 12,650 10,650 3,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Additional information (1) An analysis of property, plant and equipment shows the following. Extracts from the financial statements for Roxy plc for the years ended June are as follows: Statements of financial position as at 30 June 20X8 20X7 20X8 20X7 £ ASSETS Non-current assets Building Cost Depreciation (4,000) (1,000) Property, plant and equipment 20,750 14,000 18,000 11,000 Plant and machinery Current assets Inventories Trade and other receivables Government bonds Cost 16,000 9,950 1,000 11,000 2,700 1,300 Depreciation (2,250) (2,000) 2,750 3,000 20,750 14,000 26,950 15,000 Total assets 47,700 29,000 EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings (2) Machinery with a carrying amount of £250 was sold at the beginning of 20X8 for £350. This machinery had originally cost £1,000. 3,500 13,950 3,000 3,800 (3) The accruals are in respect of interest payable. 17,450 6,800 (4) During the year a bonus issue of 1 for 6 was made on the ordinary shares in issue at 30 June 20x7, Non-current liabilities Loans Current liabilities Bank overdrafts Trade and other payables Accruals Provision Tax liabilities 6,000 10,000 utilising retained profits. (5) The government bonds are highly liquid and management has decided to classify them as cash equivalents. 12,000 8,000 700 1,750 11,000 200 (6) Included in trade payables at 30 June 20X8 is £2,500 in respect of the purchase of non-current assets. 1,800 1,000 24,250 12,200 (7)The provision relates to a former employee's unfair dismissal claim. 47,700 29,000 Requirement Prepare a statement of cash flows for the year ended 30 June 20X8 in accordance with IAS 7, Statement Statements of profit or loss for the year ended 30 June (extracts) of Cash Flows, 20X8 20X7 Profit from operations Finance cost 5.900 (1,400) (1,000) Profit before tax 12,650 4,500 (1,500) Income tax expense (2,000) Profit for the year 10,650 3,000
Transcribed Image Text:Additional information (1) An analysis of property, plant and equipment shows the following. Extracts from the financial statements for Roxy plc for the years ended June are as follows: Statements of financial position as at 30 June 20X8 20X7 20X8 20X7 £ ASSETS Non-current assets Building Cost Depreciation (4,000) (1,000) Property, plant and equipment 20,750 14,000 18,000 11,000 Plant and machinery Current assets Inventories Trade and other receivables Government bonds Cost 16,000 9,950 1,000 11,000 2,700 1,300 Depreciation (2,250) (2,000) 2,750 3,000 20,750 14,000 26,950 15,000 Total assets 47,700 29,000 EQUITY AND LIABILITIES Equity Ordinary share capital Retained earnings (2) Machinery with a carrying amount of £250 was sold at the beginning of 20X8 for £350. This machinery had originally cost £1,000. 3,500 13,950 3,000 3,800 (3) The accruals are in respect of interest payable. 17,450 6,800 (4) During the year a bonus issue of 1 for 6 was made on the ordinary shares in issue at 30 June 20x7, Non-current liabilities Loans Current liabilities Bank overdrafts Trade and other payables Accruals Provision Tax liabilities 6,000 10,000 utilising retained profits. (5) The government bonds are highly liquid and management has decided to classify them as cash equivalents. 12,000 8,000 700 1,750 11,000 200 (6) Included in trade payables at 30 June 20X8 is £2,500 in respect of the purchase of non-current assets. 1,800 1,000 24,250 12,200 (7)The provision relates to a former employee's unfair dismissal claim. 47,700 29,000 Requirement Prepare a statement of cash flows for the year ended 30 June 20X8 in accordance with IAS 7, Statement Statements of profit or loss for the year ended 30 June (extracts) of Cash Flows, 20X8 20X7 Profit from operations Finance cost 5.900 (1,400) (1,000) Profit before tax 12,650 4,500 (1,500) Income tax expense (2,000) Profit for the year 10,650 3,000
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