The following are the Statements of Financial Position of Yomi Limited for the years ended December 31, 2015 and 2016. Non-current assets 2016 GH¢ 2015 GH¢ Land 560,000 300,000 Building & equipment 2,000,000 1,900,000 2,560,000 2,200,000 Accumulated depreciation (800,000) (770,000) 1,760,000 1,430,000 Long term investments 50,000 25,000 Total Non-current assets 1,810,000 1,455,000 Current assets Inventory 300,000 320,000 Trade receivables 410,000 460,000 Cash & cash equivalents 30,000 50,000 Prepaid 20,000 15,000 Total current assets 760,000 845,000 Total assets 2,570,000 2,300,000 Equity & Non-current liabilities Equity share capital (GH¢2 par value) 200,000 160,000 Share premium 710,000 550,000 Retained earnings 670,000 620,000 Bonds 500,000 800,000 Long term loan notes 150,000 - Total equity & non-current liabilities 2,230,000 2,130,000 Current liabilities Trade & other payables 300,000 120,000 Accrued liabilities 40,000 50,000 Total current liabilities 340,000 170,000 Total equity & liabilities 2,570,000 2,300,000 Additional information about 2016 transactions and events: Net profit for the year was GH₵110,000 Depreciation expense on buildings and equipment was GH₵60,000 Sold equipment with a cost of GH₵50,000 and accumulated depreciation of GH₵30,000 for cash of GH₵17,000 Declared and paid cash dividends of GH₵60,000 Issued a GH₵150,000 long-term note payable for buildings Purchased long-term investments for GH₵25,000 Paid GH₵300,000 on the bonds payable Issued 20,000 shares of GH₵2 par value ordinary shares for GH₵200,000. Purchased land for GH₵260,000. Required: Prepare the company’s statement of cash flows for the year ended 31st December 2016, using the indirect method, adopting the format in IAS 7 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 Statements of Financial Position of Yomi Limited for the years ended December 31, 2015 and 2016.

Non-current assets	2016 GH¢	2015 GH¢
Land	560,000	300,000
Building & equipment	2,000,000	1,900,000
	2,560,000	2,200,000
Accumulated depreciation	(800,000)	(770,000)
	1,760,000	1,430,000
Long term investments	50,000	25,000
Total Non-current assets	1,810,000	1,455,000
Current assets
Inventory	300,000	320,000
Trade receivables	410,000	460,000
Cash & cash equivalents	30,000	50,000
Prepaid	20,000	15,000
Total current assets	760,000	845,000
Total assets	2,570,000	2,300,000
Equity & Non-current liabilities
Equity share capital (GH¢2 par value)	200,000	160,000
Share premium	710,000	550,000
Retained earnings	670,000	620,000
Bonds	500,000	800,000
Long term loan notes	150,000	-
Total equity & non-current liabilities	2,230,000	2,130,000
Current liabilities
Trade & other payables	300,000	120,000
Accrued liabilities	40,000	50,000
Total current liabilities	340,000	170,000
Total equity & liabilities	2,570,000	2,300,000

Additional information about 2016 transactions and events:

Net profit for the year was GH₵110,000
Depreciation expense on buildings and equipment was GH₵60,000
Sold equipment with a cost of GH₵50,000 and accumulated depreciation of GH₵30,000 for cash of GH₵17,000
Declared and paid cash dividends of GH₵60,000
Issued a GH₵150,000 long-term note payable for buildings
Purchased long-term investments for GH₵25,000
Paid GH₵300,000 on the bonds payable
Issued 20,000 shares of GH₵2 par value ordinary shares for GH₵200,000.
Purchased land for GH₵260,000.

Required:

Prepare the company’s statement of cash flows for the year ended 31^stDecember 2016, using the indirect method, adopting the format in IAS 7 Statement of cash flows.

Expert Solution

Trending now

This is a popular 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