The following are the financial statement Quick Ltd. for the year ended 31st December 2020: Quick Ltd. Income statement For year ended 31st December 2020 $”000” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) Profit before tax 150.00 Tax (70.00) Profit after tax 80.00 Quick Ltd. Statement of financial position as at 31 December 2020 2019 $”000” $”000d” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25 Current liabilities: Trade payables 63.5 59.5 Bank overdraft 42.5 49 Tax 60 55 Total equity and liabilities 611 474 Required: Determine the Net cash flows from the operating activities of Quick Ltd for the year ended 31st December 2020. (Hint – use the indirect approach for preparation of the statement of cash flows)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

The following are the financial statement Quick Ltd. for the year ended 31^st December 2020:

Quick Ltd.
Income statement
For year ended 31^st December 2020
	$”000”
Revenue	1276.50
Cost of sales	(907.00)
	369.50
Distribution costs	(62.50)
Administrative expenses	(132.00)
	175.00
Interest received	12.50
Interest paid	(37.50)
Profit before tax	150.00
Tax	(70.00)
Profit after tax	80.00

Quick Ltd.
Statement of financial position as at 31 December
	2020	2019
	$”000”	$”000d”
ASSETS:
Non- current assets:
Property, plant and equipment	190	152.5
Intangible assets	125	100
Investments		12.5
Current assets:
Inventories	75	51
Receivables	195	157.5
Short-term investment	25
Cash in hand	1	0.5
Total assets	611	474
Equity and liabilities:
Equity:
Share capital	100	75
Share premium	80	75
Revolution reserve	50	45.5
Retained earnings	130	90
Non-current liabilities:
Loan	85	25
Current liabilities:
Trade payables	63.5	59.5
Bank overdraft	42.5	49
Tax	60	55
Total equity and liabilities	611	474

Required:

Determine the Net cash flows from the operating activities of Quick Ltd for the year ended 31^st December 2020. (Hint – use the indirect approach for preparation of the statement of cash flows)

Expert Solution

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions