Y plc's income statement for the year ended 31 December 2012 and statements of financial position as at 31 December 2011 and 31 December 2012 were as follows:Y plc - Income statement for the year ended 31 December 2012 £’000£’000Sales revenue 360Raw materials consumed(35) Staff costs(47) Depreciation(59) Loss on disposal of machinery(9) (150)Operating profit 210Interest payable (14)Profit before tax 196Income tax expense (62)Profit after tax 134Y plc – Statement of Financial Position as at 31 December 2012201220112011 £'000£'000£'000£'000Non-current assets Cost 798 780Depreciation (159) (112) 639 668Current asset Inventory12 10 Trade receivables33 25 Bank24 28 69 63 708 731Equity and liabilities Share capital180 170 Share premium18 12 Retained earnings358 257 556 439Non-current liabilities Long-term loans 100 250Current liabilities Trade payables6 3 Income tax46 39 52 42 708 731 During the year, Y plc paid £45,000 for a new piece of machinery.A dividend of £33,000 was paid during the year. 1. Prepare a statement of cash flow for Y plc for the year ended 31 December 2012 in accordance with the requirements of IAS 7.2. Comment on the purpose of a statement of cash flow illustrating your points using the statement prepared in part (a) of the question.

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Answered: During the year, Y plc paid £45,000 for…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 22E

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Y plc's income statement for the year ended 31 December 2012 and statements of financial position as at 31 December 2011 and 31 December 2012 were as follows:

Y plc - Income statement for the year ended 31 December 2012

	£’000	£’000
Sales revenue		360
Raw materials consumed	(35)
Staff costs	(47)
Depreciation	(59)
Loss on disposal of machinery	(9)
		(150)
Operating profit		210
Interest payable		(14)
Profit before tax		196
Income tax expense		(62)
Profit after tax		134

Y plc – Statement of Financial Position as at 31 December

	2012	2012	2011	2011
	£'000	£'000	£'000	£'000
Non-current assets
Cost		798		780
Depreciation		(159)		(112)
		639		668
Current asset
Inventory	12		10
Trade receivables	33		25
Bank	24		28
		69		63
		708		731
Equity and liabilities
Share capital	180		170
Share premium	18		12
Retained earnings	358		257
		556		439
Non-current liabilities
Long-term loans		100		250
Current liabilities
Trade payables	6		3
Income tax	46		39
		52		42
		708		731

During the year, Y plc paid £45,000 for a new piece of machinery.

A dividend of £33,000 was paid during the year.

1. Prepare a statement of cash flow for Y plc for the year ended 31 December 2012 in accordance with the requirements of IAS 7.

2. Comment on the purpose of a statement of cash flow illustrating your points using the statement prepared in part (a) of the question.

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