Prepare as Cash Flow Statement of Star Trading plc. as at June 30, 2020 on Indirect method. Statement of Financial Position Particulars 2020 2019 (Amount in PKR '000') Assets: Cash 9,000 15,000 Debtors 25,000 31,000 Stock 60,000 45,000 Fixed asset at cost 120,000 105,000 214,000 196,000 Capital & Liabilities: Share Capital 32,500 31,500 6% Loan due on 31‐12‐2021 50,000 70,000 Retained Earnings 38,500 27,500 Creditors 20,000 12,500 Income‐tax Payable 36,000 27,500 Accumulated Depreciation 37,000 27,000 214,000 196,000 Income Statement Particulars 2020 2019 (Amount in PKR '000') Sales 425,000 450,000 Operating Expenses (including depreciation Rs. 10,000) 340,000 380,800 Interest on Loan 3,000 4,200 Net Profit Before Tax 82,000 65,000 Income Tax 36,000 27,500 46,000 37,500 Statement of Retained Earnings Particulars 2020 2019 (Amount in PKR '000') Retained Earnings – Beginning 27,500 25,000 Net Profit for the year 46,000 37,500 (including depreciation Rs. 10,000) 73,500 62,500 Dividends 35,000 35,000 Retained Earnings – End 38,500 27,500

Prepare as Cash Flow Statement of Star Trading plc. as at June 30, 2020 on Indirect method. Statement of Financial Position Particulars 2020 2019 (Amount in PKR '000') Assets: Cash 9,000 15,000 Debtors 25,000 31,000 Stock 60,000 45,000 Fixed asset at cost 120,000 105,000 214,000 196,000 Capital & Liabilities: Share Capital 32,500 31,500 6% Loan due on 31‐12‐2021 50,000 70,000 Retained Earnings 38,500 27,500 Creditors 20,000 12,500 Income‐tax Payable 36,000 27,500 Accumulated Depreciation 37,000 27,000 214,000 196,000 Income Statement Particulars 2020 2019 (Amount in PKR '000') Sales 425,000 450,000 Operating Expenses (including depreciation Rs. 10,000) 340,000 380,800 Interest on Loan 3,000 4,200 Net Profit Before Tax 82,000 65,000 Income Tax 36,000 27,500 46,000 37,500 Statement of Retained Earnings Particulars 2020 2019 (Amount in PKR '000') Retained Earnings – Beginning 27,500 25,000 Net Profit for the year 46,000 37,500 (including depreciation Rs. 10,000) 73,500 62,500 Dividends 35,000 35,000 Retained Earnings – End 38,500 27,500

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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Prepare as Cash Flow Statement of Star Trading plc. as at June 30, 2020 on Indirect method.

Statement of Financial Position

Particulars	2020	2019
	(Amount in PKR '000')
Assets:

Cash	9,000	15,000
Debtors	25,000	31,000
Stock	60,000	45,000
Fixed asset at cost	120,000	105,000
	214,000	196,000

Capital & Liabilities:

Share Capital	32,500	31,500
6% Loan due on 31‐12‐2021	50,000	70,000
Retained Earnings	38,500	27,500
Creditors	20,000	12,500
Income‐tax Payable	36,000	27,500
Accumulated Depreciation	37,000	27,000
	214,000	196,000



Income Statement

Particulars	2020	2019
	(Amount in PKR '000')

Sales	425,000	450,000
Operating Expenses
(including depreciation Rs. 10,000)	340,000	380,800
Interest on Loan	3,000	4,200
Net Profit Before Tax	82,000	65,000
Income Tax	36,000	27,500
	46,000	37,500



Statement of Retained Earnings

Particulars	2020	2019
	(Amount in PKR '000')

Retained Earnings – Beginning	27,500	25,000
Net Profit for the year	46,000	37,500
(including depreciation Rs. 10,000)	73,500	62,500
Dividends	35,000	35,000
Retained Earnings – End	38,500	27,500

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