Statement of Cash Flows (Indirect method) Particulars Amount in £000 Amount in £000 Cash Flow from operating activities: Net loss -14 Adjustments: Loss on sale of assets 24 88 14 Depreciation Amortization 20 22 -32 8| 136 Exceptional write down Decrease in accounts receivable Increase in Inventories Decrease in Prepaid expenses Increase in Accounts payable Increase in Accrued Interest Decrease in Taxation -160 124 Cash flow from Operating Activities Cash Flow from Investing Activites: 110 10 -164 -40 Proceeds from sale of assets Cash paid for purchase of assets Cash Paid for purchase of Patent Net Cash flow from Investing activities -194 Cash Flow from Financing Activities: 36 140 Loans Common stock issued Net cash flow from Financing activities 176 Net change in cash 92 Beginning cash balance 214 Ending cash balance 306 Working Note: Loss on sale of assets Cost 60 Less: accu. Depreciation Book Value 26 34 Sale proceed Loss on sale of assets (34-10) 10 24 00 4.
Statement of Cash Flows (Indirect method) Particulars Amount in £000 Amount in £000 Cash Flow from operating activities: Net loss -14 Adjustments: Loss on sale of assets 24 88 14 Depreciation Amortization 20 22 -32 8| 136 Exceptional write down Decrease in accounts receivable Increase in Inventories Decrease in Prepaid expenses Increase in Accounts payable Increase in Accrued Interest Decrease in Taxation -160 124 Cash flow from Operating Activities Cash Flow from Investing Activites: 110 10 -164 -40 Proceeds from sale of assets Cash paid for purchase of assets Cash Paid for purchase of Patent Net Cash flow from Investing activities -194 Cash Flow from Financing Activities: 36 140 Loans Common stock issued Net cash flow from Financing activities 176 Net change in cash 92 Beginning cash balance 214 Ending cash balance 306 Working Note: Loss on sale of assets Cost 60 Less: accu. Depreciation Book Value 26 34 Sale proceed Loss on sale of assets (34-10) 10 24 00 4.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Dolente Ltd is a small company which designs, manufactures and sells innovative electronic instruments. The directors of the company have discussed the financial statements prepared for the year ended 31st March 2020 and have made the following remarks.
“We are surprised to see that we have a loss for the year as our bank balance seems to be healthy and has increased from the 2019 figure”.
task:
Using the information provided by the
Transcribed Image Text:Statement of Cash Flows (Indirect method)
Particulars
Amount in £000 Amount in £000
Cash Flow from operating activities:
Net loss
Adjustments:
Loss on sale of assets
Depreciation
Amortization
Exceptional write down
Decrease in accounts receivable
Increase in Inventories
Decrease in Prepaid expenses
Increase in Accounts payable
Increase in Accrued Interest
Decrease in Taxation
-14
24
88
14
20
22
-32
8
136
4
-160
124
Cash flow from Operating Activities
Cash Flow from Investing Activites:
Proceeds from sale of assets
Cash paid for purchase of assets
Cash Paid for purchase of Patent
Net Cash flow from Investing activities
Cash Flow from Financing Activities:
110
10
-164
-40
-194
Loans
36
Common stock issued
Net cash flow from Financing activities
Net change in cash
Beginning cash balance
Ending cash balance
140
176
92
214
306
Working Note:
Loss on sale of assets
Cost
60
Less: accu. Depreciation
26
Book Value
34
Sale proceed
10
Loss on sale of assets (34-10)
24
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