Loans andborrowingsDeferred taxekliability14,13010,220-1,010960-15,14011,180CurrentLiabilitiesTradepayableCurrent tax1,2601,1401,040920payableInterestpayable980-740k3,28040,1902,80032,960Total EquityandLiabilities2019£'0002018£'000SalesCost of salesDistribution costseAdministration expensesGain on disposal of PPE22,000(11,800)(3,100)(1,630)28016,000(8,200)(2,600)(1,420)Interest expensee aТах еexpensee(1,140)(1,820)(760)(1,240)Net profit2,7901,7801.The company disposal of PPE during the year with a book value of £1,000,000.2. Depreciation of property, plant and equipment for the year was £650,000.4The intangibles were acquired for cash towards the end of the year and were not sub ject toany amortisation in the current period.e3.Prepare the statement of cash flows using the indirect method. Statement of financial position as of 31 December2019000.32018£'000£'000£'000ASSETSNon32,20029,900-CurrentAssetsPPE2,100OkIntangibles34,30029,800CurrentAssets1,680-1,760-1,1201,260InventoriesTradereceivables -PrepaymentsBank and3202,130130650cash5,8903,160Total Assets<40,190-32,960EQUITYANDLIABILITIESEquity9,400IssuedcapitalRetained9,40012,370-9,580earningse21,77018,980NonCurrentLiabilities -

Following is the requisite cash flow statement

Loans and 14,130 10,220 borrowings a Deferred tax liability 1,010 960 15,140 11,180 Currente Liabilitiese Trade payable Current tax payable Interest payable 1,260 1,140 1,040 920 980- 740 3,280 40,190- 2,800 32,960 Total Equity and Liabilities 2019 £'000 2018 £'000 Sales Cost of sales= Distribution costsee 22,000 (11,800) (3,100) (1,630) 280 16,000 (8,200) (2,600) (1,420) Administration expenses Gain on disposal of PPE (1,140) (1,820) (760) (1,240) Interest expense Тах ехpense- Net profit 2,790 1,780 1. The company disposal of PPE during the year with a book value of £1,000,000. Depreciation of property, plant and equipment for the year was £650,000. The intangibles were acquired for cash towards the end of the year and were not subject to any amortisation in the current period. 2. 3. Prepare the statement of cash flows using the indirect method.

Loans and 14,130 10,220 borrowings a Deferred tax liability 1,010 960 15,140 11,180 Currente Liabilitiese Trade payable Current tax payable Interest payable 1,260 1,140 1,040 920 980- 740 3,280 40,190- 2,800 32,960 Total Equity and Liabilities 2019 £'000 2018 £'000 Sales Cost of sales= Distribution costsee 22,000 (11,800) (3,100) (1,630) 280 16,000 (8,200) (2,600) (1,420) Administration expenses Gain on disposal of PPE (1,140) (1,820) (760) (1,240) Interest expense Тах ехpense- Net profit 2,790 1,780 1. The company disposal of PPE during the year with a book value of £1,000,000. Depreciation of property, plant and equipment for the year was £650,000. The intangibles were acquired for cash towards the end of the year and were not subject to any amortisation in the current period. 2. 3. Prepare the statement of cash flows using the indirect method.

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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Question

Loans and
borrowings
Deferred taxek
liability
14,130
10,220-
1,010
960-
15,140
11,180
Current
Liabilities
Trade
payable
Current tax
1,260
1,140
1,040
920
payable
Interest
payable
980-
740k
3,280
40,190
2,800
32,960
Total Equity
and
Liabilities
2019
£'000
2018
£'000
Sales
Cost of sales
Distribution costse
Administration expenses
Gain on disposal of PPE
22,000
(11,800)
(3,100)
(1,630)
280
16,000
(8,200)
(2,600)
(1,420)
Interest expensee a
Тах еexpensee
(1,140)
(1,820)
(760)
(1,240)
Net profit
2,790
1,780
1.
The company disposal of PPE during the year with a book value of £1,000,000.
2. Depreciation of property, plant and equipment for the year was £650,000.4
The intangibles were acquired for cash towards the end of the year and were not sub ject to
any amortisation in the current period.e
3.
Prepare the statement of cash flows using the indirect method.

Statement of financial position as of 31 December
2019
000.3
2018
£'000
£'000
£'000
ASSETS
Non
32,200
29,900-
Current
Assets
PPE
2,100
Ok
Intangibles
34,300
29,800
Current
Assets
1,680-
1,760-
1,120
1,260
Inventories
Trade
receivables -
Prepayments
Bank and
320
2,130
130
650
cash
5,890
3,160
Total Assets<
40,190-
32,960
EQUITY
AND
LIABILITI
ES
Equity
9,400
Issued
capital
Retained
9,400
12,370-
9,580
earningse
21,770
18,980
Non
Current
Liabilities -

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