The draft financial statements of Enjoy Ltd for the year ended 31 December 20X6 are given below. The following additional information is also provided: (i) Plant with an original cost of $800 and accumulated depreciation of $600 was sold for $200. (ii) Interest expense was $350 of which $140 was paid during the period. $130 relating to interest expense of the prior period was also paid during the period. (iii) Investment income included $250 of interest that was received during the period and $250 of interest still to be received. The $250 of interest still to be received is included within other receivables. (iv) Investment income also included $300 of dividend that was received. Statement of Profit and Loss for the year ended 31 December 20X6: Sales 44,870 Cost of sales 31,000 Gross Profit 13,870 Administration&selling expenses 2,490 Interest expenses 350 Invesment income 800 2,040 Profit before tax 11,830 Income tax expense 350 Profit for the year 11,480 Statement of financial position as at 31 December: 20X6 20X5 Assets Non-current assets Property, plant and equipment(at cost) 3,280 2,610 Accumulated depreciation 1,000 660 Net book value 2,280 1,950 Investment 2,000 2,000 4,280 3,950 Current assets Inventory 1,500 1,350 Trade and other receivables 1,600 1,060 Cash in hand 710 300 3,810 2,710 Total assets 8,090 6,660 Equity and Liabilities Equity Share capital($1 ordinary shares) 1,220 1,150 Share premium 680 380 Retained earnings 3,010 1,100 Total equity 4,910 2,630 Non-current liabilities Long term debt 2,000 840 Current liabilities Trade and other payables 550 1,090 Finance costs 380 300 Taxation 250 1,800 Total liabilities 3,180 4,030 Total equity and liabilities 8,090 6,660 Complete the proforma to prepare a statement of cash flows for the year ended 31 December 20X6 using the indirect method illustrated in IAS7 and including a reconciliation of profit before tax to cash flow form operations. Cash flows from operating activities Cash generated form operations Interest paid Income tax paid Net cash from operating activities Cash flow from investing activities Purchase of PPE Proceeds os sale of equipment Interest received Dividends received Net cash used in investing activities Cah flows from financing activities Proceeds from issues of shares Proceeds from long term borrowings Dividends paid Net cash used in financing activities Net increase in cash and cash equivalents Cash at the beginning of the period Cash at the end of the period Reconciliation of profit before tax to cash flows from operations Net profit before tax Adjustments for Investment income Interest expense Depreciation Movement in trade receivables Movement in inventories Movement in trade payables Cash generated from operations
The draft financial statements of Enjoy Ltd for the year ended 31 December 20X6 are given below. The following additional information is also provided:
(i) Plant with an original cost of $800 and
(ii) Interest expense was $350 of which $140 was paid during the period. $130 relating to interest expense of the prior period was also paid during the period.
(iii) Investment income included $250 of interest that was received during the period and $250 of interest still to be received. The $250 of interest still to be received is included within other receivables.
(iv) Investment income also included $300 of dividend that was received.
Statement of
Sales 44,870
Cost of sales 31,000
Gross Profit 13,870
Administration&selling expenses 2,490
Interest expenses 350
Invesment income 800 2,040
Profit before tax 11,830
Income tax expense 350
Profit for the year 11,480
20X6 20X5
Assets
Non-current assets
Property, plant and equipment(at cost) 3,280 2,610
Accumulated depreciation 1,000 660
Net book value 2,280 1,950
Investment 2,000 2,000
4,280 3,950
Current assets
Inventory 1,500 1,350
Trade and other receivables 1,600 1,060
Cash in hand 710 300
3,810 2,710
Total assets 8,090 6,660
Equity and Liabilities
Equity
Share capital($1 ordinary shares) 1,220 1,150
Share premium 680 380
Total equity 4,910 2,630
Non-current liabilities
Long term debt 2,000 840
Current liabilities
Trade and other payables 550 1,090
Finance costs 380 300
Total liabilities 3,180 4,030
Total equity and liabilities 8,090 6,660
Complete the proforma to prepare a statement of
Cash flows from operating activities
Cash generated form operations
Interest paid
Income tax paid
Net cash from operating activities
Cash flow from investing activities
Purchase of PPE
Proceeds os sale of equipment
Interest received
Dividends received
Net cash used in investing activities
Cah flows from financing activities
Proceeds from issues of shares
Proceeds from long term borrowings
Dividends paid
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash at the beginning of the period
Cash at the end of the period
Reconciliation of profit before tax to cash flows from operations
Net profit before tax
Adjustments for
Investment income
Interest expense
Depreciation
Movement in trade receivables
Movement in inventories
Movement in trade payables
Cash generated from operations
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