Question One The Purple Lilac has provided the following financial statement as at December 31, 2017 BALANCE SHEET 2016 2017 Non-Current Assets Cost Depn NBV Cost Depn NBV Goodwill 280,000 220,000 Tangible Assets 1,700,000 (330,000) 1,370,000 2,000,000 (410,000) 1,590,000 Long term Investment 230,000 110,000 1,880,000 1,920,000 Current Assets Closing Stock 50,000 35,000 Debtors 35,000 45,000 Short term Investment 40,000 85,000 Bank 0 40,000 Cash 3,500 128,500 11,000 216,000 Total Assets 2,008,500 2,136,000 Capital & Reserves Share Capital 670,000 845,000 General Reserves 210,000 210,000 Revaluation Reserves 40,000 135,000 Retained Profit 200,000 1,120,000 (115,000) 1,075,000 Non Current Liability 10% Debenture 650,000 850,000 Current Liabilities Creditors 33,500 130,000 Dividends Payable 45000 15,000 Tax Payable 35,000 11,000 Interest Owing 40,000 55,000 Bank Overdraft 85,000 238,500 0 211,000 Total Equity & Liabilities 2,008,500 2,136,000 CONDENSED INCOME STATEMENT 2017 PBIT (230,000) Less interest (85,000) Profit before tax (315,000) Less tax 0 PAT (315,000) Add Retained Earning b/d 200,000 Total Profit for the Year (115,000) Less Transfer to Reserves 0 Less Dividends 0 0 Retained Earning c/d (115,000) Note : During the year non-current asset costing $140,000 with a book value or $110,000 was sold at a profit of $20,000 Question 1. Prepare the cash flow statement for 2017
Question One
The Purple Lilac has provided the following financial statement as at December 31, 2017
|
Non-Current Assets |
Cost |
Depn |
NBV |
Cost |
Depn |
NBV |
|
|
|
|
|
280,000 |
|
|
220,000 |
|
|
Tangible Assets |
1,700,000 |
(330,000) |
1,370,000 |
2,000,000 |
(410,000) |
1,590,000 |
|
|
Long term Investment |
|
|
230,000 |
|
|
110,000 |
|
|
|
|
|
1,880,000 |
|
|
1,920,000 |
|
|
Current Assets |
|
|
|
|
|
|
|
|
Closing Stock |
|
50,000 |
|
|
35,000 |
|
|
|
Debtors |
|
35,000 |
|
|
45,000 |
|
|
|
Short term Investment |
|
40,000 |
|
|
85,000 |
|
|
|
Bank |
|
0 |
|
|
40,000 |
|
|
|
Cash |
|
3,500 |
128,500 |
|
11,000 |
216,000 |
|
|
Total Assets |
|
|
2,008,500 |
|
|
2,136,000 |
|
|
|
|
|
|
|
|
|
|
|
Capital & Reserves |
|
|
|
|
|
|
|
|
Share Capital |
|
670,000 |
|
|
845,000 |
|
|
|
General Reserves |
|
210,000 |
|
|
210,000 |
|
|
|
Revaluation Reserves |
|
40,000 |
|
|
135,000 |
|
|
|
Retained Profit |
|
200,000 |
1,120,000 |
|
(115,000) |
1,075,000 |
|
|
|
|
|
|
|
|
|
|
|
Non Current Liability |
|
|
|
|
|
|
|
|
10% Debenture |
|
|
650,000 |
|
|
850,000 |
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Creditors |
|
33,500 |
|
|
130,000 |
|
|
|
Dividends Payable |
|
45000 |
|
|
15,000 |
|
|
|
Tax Payable |
|
35,000 |
|
|
11,000 |
|
|
|
Interest Owing |
|
40,000 |
|
|
55,000 |
|
|
|
Bank Overdraft |
|
85,000 |
238,500 |
|
0 |
211,000 |
|
|
Total Equity & Liabilities |
|
|
2,008,500 |
|
|
2,136,000 |
CONDENSED INCOME STATEMENT 2017
|
PBIT |
|
|
(230,000) |
|
Less interest |
|
|
(85,000) |
|
Profit before tax |
|
|
(315,000) |
|
Less tax |
|
|
0 |
|
PAT |
|
|
(315,000) |
|
|
|
|
|
|
Add |
|
|
200,000 |
|
Total Profit for the Year |
|
|
(115,000) |
|
Less Transfer to Reserves |
|
0 |
|
|
Less Dividends |
|
0 |
0 |
|
Retained Earning c/d |
|
|
(115,000) |
Note : During the year non-current asset costing $140,000 with a book value or $110,000 was sold at a profit of $20,000
Question
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