Additional information (i) The depreciation charge for the year was £187,500. (ii) Included in profit from operations is a loss of £52,500 in respect of the disposal of machinery in the year. This machinery had a carrying amount of £112,500 at the disposal date. (iii) Intangible assets costing £97,500 were purchased for cash during the year. There were no disposals of intangible assets. (iv) Included in trade payables at 31 December 2020 is an amount of £37,500 in respect of a purchase of a machine. Included in trade receivables at 31 December 2020 is an amount of £21,000 in respect of disposal of machinery. (v) Included in accruals at 31 December 2020 is accrued interest of £21,000. The corresponding figure for 2019 is £24,000. (vi) Sally Ltd paid a dividend during the year. Requirement (a) Prepare a Statement of Cash Flov ended 31 December 2020 in accordance with IAS 7. or Sally Ltd for the year (b) Explain the differences between cash flows and income.

Additional information (i) The depreciation charge for the year was £187,500. (ii) Included in profit from operations is a loss of £52,500 in respect of the disposal of machinery in the year. This machinery had a carrying amount of £112,500 at the disposal date. (iii) Intangible assets costing £97,500 were purchased for cash during the year. There were no disposals of intangible assets. (iv) Included in trade payables at 31 December 2020 is an amount of £37,500 in respect of a purchase of a machine. Included in trade receivables at 31 December 2020 is an amount of £21,000 in respect of disposal of machinery. (v) Included in accruals at 31 December 2020 is accrued interest of £21,000. The corresponding figure for 2019 is £24,000. (vi) Sally Ltd paid a dividend during the year. Requirement (a) Prepare a Statement of Cash Flov ended 31 December 2020 in accordance with IAS 7. or Sally Ltd for the year (b) Explain the differences between cash flows and income.

Name: Extracts from the financial statements of Sally Ltd for the year ende
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Description: Extracts from the financial statements of Sally Ltd for the year ended31 December 2020 are as follows:2.Statement of Profit or Loss for the year ended 31 December 2020£'000Profit from operations712.5(42)670.5(93)577.5Finance costsProfit before taxIn

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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