Required : Prepare the cash flow statement for the year 2017 Select appropriate items in the cash flow to comment on the state of liquidity and profitability of the company
Wakanda Mulla has presented the following financial data for 2017 :
|
Non-Current Assets |
Cost |
Depn |
NBV |
Cost |
Depn |
NBV |
|
|
|
|
|
260,000 |
|
|
210,000 |
|
|
Tangible Assets |
1,800,000 |
(360,000) |
1,440,000 |
2,300,000 |
(450,000) |
1,850,000 |
|
|
Long term Investment |
|
|
130,000 |
|
|
130,000 |
|
|
|
|
|
1,830,000 |
|
|
2,190,000 |
|
|
Current Assets |
|
|
|
|
|
|
|
|
Closing Stock |
|
35,000 |
|
|
55,000 |
|
|
|
Debtors |
|
65,000 |
|
|
20,000 |
|
|
|
Short term Investment |
|
40,000 |
|
|
65,000 |
|
|
|
Bank |
|
0 |
|
|
40,000 |
|
|
|
Cash |
|
2,000 |
142,000 |
|
17,000 |
197,000 |
|
|
Total Assets |
|
|
1,972,000 |
|
|
2,387,000 |
|
|
|
|
|
|
|
|
|
|
|
Capital & Reserves |
|
|
|
|
|
|
|
|
Share Capital |
|
700,000 |
|
|
900,000 |
|
|
|
General Reserves |
|
250,000 |
|
|
250,000 |
|
|
|
Retained Profit |
|
210,000 |
1,160,000 |
|
50,000 |
1,200,000 |
|
|
|
|
|
|
|
|
|
|
|
Non Current Liability |
|
|
|
|
|
|
|
|
10% Debenture |
|
|
700,000 |
|
|
1,000,000 |
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
Creditors |
|
36,000 |
|
|
96,000 |
|
|
|
Dividends Payable |
|
11000 |
|
|
11000 |
|
|
|
Tax Payable |
|
20,000 |
|
|
20000 |
|
|
|
Interest Owing |
|
10,000 |
|
|
60,000 |
|
|
|
Bank Overdraft |
|
35,000 |
112,000 |
|
0 |
187,000 |
|
|
Total Equity & Liabilities |
|
|
1,972,000 |
|
|
2,387,000 |
Condensed Income Statement
|
PBIT |
|
|
(60,000) |
|
Less interest |
|
|
(100,000) |
|
Profit before tax |
|
|
(160,000) |
|
Less tax |
|
|
0 |
|
PAT |
|
|
(160,000) |
|
|
|
|
|
|
Add |
|
|
210,000 |
|
Total Profit for the Year |
|
|
50,000 |
|
Less Transfer to Reserves |
|
0 |
|
|
Less Dividends |
|
0 |
0 |
|
Retained Earning c/d |
|
|
50,000 |
Tangible asset costing $80,000 with
Required :
- Prepare the
cash flow statement for the year 2017
- Select appropriate items in the cash flow to comment on the state of liquidity and profitability of the company
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