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Current liabilities Trade and other payables nterest payable Taxation 1,750 13,230 1,610 700 2,800 7,000 6,160 20,930 Tatal eguity and liahilities 56 590 46.629

Current liabilities Trade and other payables nterest payable Taxation 1,750 13,230 1,610 700 2,800 7,000 6,160 20,930 Tatal eguity and liahilities 56 590 46.629

FINANCIAL ACCOUNTING
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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Below are extracts from the financial statements of Charlton Ltd: Statement of profit or loss for the year ended 31 December 2020 Revenue 214,550 Cost of sales (182,000) Gross profit 32,550 Investment income 4,760 Loss on disposal (40) (6,300) (3,500) Distribution costs Administrative expenses Profit from operations 27,470 Finance costs (2,800) Profit before tax 24,670 (2,100) 22,570 Income tax expense Profit for the period Statements of financial position 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 Current assets Inventories 7,000 13,650 Trade and other receivables 13,300 8,400 Cash and cash equivalents 2,870 1,120 23,170 23,170 Total assets 56,590 46,620 Equity and liabilities Capital and reserves Share capital 7,000 6,300 Share premium Retained earnings 3,500 2,450 23.830 9,660 34,330 18,410 Non-current liabilities Long term borrowings 16,100 7,280 Current liabilities Trade and other payables 1,750 13,230 Interest payable 1,610 700 Taxation 2,800 7,000 6,160 20,930 Total equity and liabilities 56,590 46,620 Additional information: 1. Profit from operations is after charging depreciation on the property, plant and equipment of £3,150. 2. Plant and machinery costing £560 and with accumulated depreciation of £420, was sold during the year. 3. The receivables at the end of 2020 includes £700 of interest receivable. There was no equivalent balance at the beginning of the year. 4. Investment income of £4,760 is made up of £2,100 interest receivable and £2,660 dividends received. 5. On the 1 April 2020 Charlton Ltd paid the final dividend for financial year 2019 which was finalised at £6,300. On the 1 July 2020 Charlton Ltd also paid an interim dividend for financial year 2020 for £2,100. At the end the current financial year Charlton Ltd proposed a final dividend of £7,200. Required: Using the pro-forma in your spreadsheet answer booklet provided prepare a statement of cash flows for Charlton Ltd for the year ended 31 December 2020 in compliance with IAS 7 Statement of Cash Flows.
Transcribed Image Text:Below are extracts from the financial statements of Charlton Ltd: Statement of profit or loss for the year ended 31 December 2020 Revenue 214,550 Cost of sales (182,000) Gross profit 32,550 Investment income 4,760 Loss on disposal (40) (6,300) (3,500) Distribution costs Administrative expenses Profit from operations 27,470 Finance costs (2,800) Profit before tax 24,670 (2,100) 22,570 Income tax expense Profit for the period Statements of financial position 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 31 December 2020 31 December 2019 Assets Non-current assets Property, plant and equipment 15,920 5,950 Investments 17,500 17,500 33,420 23,450 Current assets Inventories 7,000 13,650 Trade and other receivables 13,300 8,400 Cash and cash equivalents 2,870 1,120 23,170 23,170 Total assets 56,590 46,620 Equity and liabilities Capital and reserves Share capital 7,000 6,300 Share premium Retained earnings 3,500 2,450 23.830 9,660 34,330 18,410 Non-current liabilities Long term borrowings 16,100 7,280 Current liabilities Trade and other payables 1,750 13,230 Interest payable 1,610 700 Taxation 2,800 7,000 6,160 20,930 Total equity and liabilities 56,590 46,620 Additional information: 1. Profit from operations is after charging depreciation on the property, plant and equipment of £3,150. 2. Plant and machinery costing £560 and with accumulated depreciation of £420, was sold during the year. 3. The receivables at the end of 2020 includes £700 of interest receivable. There was no equivalent balance at the beginning of the year. 4. Investment income of £4,760 is made up of £2,100 interest receivable and £2,660 dividends received. 5. On the 1 April 2020 Charlton Ltd paid the final dividend for financial year 2019 which was finalised at £6,300. On the 1 July 2020 Charlton Ltd also paid an interim dividend for financial year 2020 for £2,100. At the end the current financial year Charlton Ltd proposed a final dividend of £7,200. Required: Using the pro-forma in your spreadsheet answer booklet provided prepare a statement of cash flows for Charlton Ltd for the year ended 31 December 2020 in compliance with IAS 7 Statement of Cash Flows.
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