statements of financial position at 31 December 2019 and 2020 were as follows: Ashton: Income Statement for the vears ended 31 December 2019 and 2020 2019 2020 £'000 £'000 Profit before interest and tax 72 76 Interest paid (3) (4) Profit before tax 69 72 Таx (14) (16) Profit after tax 55 56 Ashton: Statement of Financial Position as at 31 December for 2019 and 2020 2019 2020 £'000 £'000 Non Current Assets Cost 160 230 (44) 116 Accumulated depreciation (60) 170 Net book value Current Assets Inventory 25 Trade receivables 18 15 Cash 21 27 59 67 TOTAL ASSETS 175 237 Equity £1 Ordinary shares Retained profits 51 63 43 79 94 142 Non Current Liabilities Bank loan 30 32 Current Liabilities Trade payables 21 27 Таxation 12 16 Dividend 18 20 51 63 TOTAL EQUITY & LIABILITIES 175 237 20
statements of financial position at 31 December 2019 and 2020 were as follows: Ashton: Income Statement for the vears ended 31 December 2019 and 2020 2019 2020 £'000 £'000 Profit before interest and tax 72 76 Interest paid (3) (4) Profit before tax 69 72 Таx (14) (16) Profit after tax 55 56 Ashton: Statement of Financial Position as at 31 December for 2019 and 2020 2019 2020 £'000 £'000 Non Current Assets Cost 160 230 (44) 116 Accumulated depreciation (60) 170 Net book value Current Assets Inventory 25 Trade receivables 18 15 Cash 21 27 59 67 TOTAL ASSETS 175 237 Equity £1 Ordinary shares Retained profits 51 63 43 79 94 142 Non Current Liabilities Bank loan 30 32 Current Liabilities Trade payables 21 27 Таxation 12 16 Dividend 18 20 51 63 TOTAL EQUITY & LIABILITIES 175 237 20
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How do I do this question?
Transcribed Image Text:17. Ashton plc's income statement for the year ended 31 December 2020 and
statements of financial position at 31 December 2019 and 2020 were as follows:
Ashton: Income Statement for the years ended 31 December 2019 and 2020
2019
2020
£'000
76
£'000
Profit before interest and tax
72
Interest paid
(3)
(4)
Profit before tax
69
72
Таx
(14)
(16)
Profit after tax
55
56
Ashton: Statement of Financial Position as at 31 December for 2019 and 2020
2020
2019
£'000
£'000
Non Current Assets
Cost
160
230
Accumulated depreciation
(44)
(60)
170
Net book value
116
Current Assets
Inventory
20
25
Trade receivables
18
15
Cash
21
27
59
67
TOTAL ASSETS
175
237
Equity
£1 Ordinary shares
Retained profits
51
63
43
79
94
142
Non Current Liabilities
Bank loan
30
32
Current Liabilities
Trade payables
21
27
Таxation
12
16
Dividend
18
20
51
63
TOTAL EQUITY & LIABILITIES
175
237
Transcribed Image Text:Additional information for the year ended 31 December 2020 is as follows:
i) During the year, the company sold machinery that originally costs £40,000 for
£26,000. The accumulated depreciation for this machinery sold was £15,000.
ii) Dividends of £18,000 was paid.
Required:
(a) Prepare a Statement of Cash Flows for Ashton plc for the year ended 31
December 2020 in accordance with IAS 7 'Statement of Cash Flow.'
(b) Critically discuss what insights can be drawn from a statement of cash flows and
why this offers important insights beyond what is included in the income
statement or statement of financial position.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education