nancial Accounting 201Example:The following information has been extracted from the financial statements ofTakeo Plastics Limited for the year ended 31 December 20X9.SalesCost of salesGross profitWages and salariesOther expenses (including depreciation GH$25,000)Interest chargesProfit before taxTax on profitProfit after taxExtracts from the statement of financial position:At 1 January20X9GH¢Trade receivablesInventoryTrade payablesAccrued wages and salariesAccrued interest chargesTax payable233,000118,000102,000a)b)8,00030,00052,000GH¢1,280,000(400,000)880,000(290,000)(350,000)240,000(50,000)190,000(40,000)150,000At 31 December20X9GH¢219,000124,000125,0005,00045,00043,000RequiredPresent the cash flows from operating activities as they would be presented in astatement of cash flows using:the direct method; andthe indirect method.

The cash flow statement is prepared to record the cash flow from various activities during the…

Example: The following information has been extracted from the financial statements of Takeo Plastics Limited for the year ended 31 December 20X9. Sales Cost of sales Gross profit Wages and salaries Other expenses (including depreciation GH$25,000) Interest charges Profit before tax Tax on profit Profit after tax Extracts from the statement of financial position: At 1 January 20X9 GH¢ Trade receivables Inventory 233,000 118,000 GH¢ 1,280,000 (400,000) 880,000 (290,000) (350,000) 240,000 (50,000) 190,000 (40,000) 150,000 At 31 December 20X9 GH¢ 219,000 124,000

Example: The following information has been extracted from the financial statements of Takeo Plastics Limited for the year ended 31 December 20X9. Sales Cost of sales Gross profit Wages and salaries Other expenses (including depreciation GH$25,000) Interest charges Profit before tax Tax on profit Profit after tax Extracts from the statement of financial position: At 1 January 20X9 GH¢ Trade receivables Inventory 233,000 118,000 GH¢ 1,280,000 (400,000) 880,000 (290,000) (350,000) 240,000 (50,000) 190,000 (40,000) 150,000 At 31 December 20X9 GH¢ 219,000 124,000

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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