The following information has been extracted from the draft financial statements of Snowdrop, a limited liability company. SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 2020 2019 GHe'000 GHe'000 GHe'000 GHe'000 Non-current assets 4,600 2,700 Current assets Inventory Trade receivables 580 00 360 230 170 940 900 Bank Total assets 5,540 3,600 Equity and liabilities Equity Ordinary share capital Capital Surplus Retained earnings 3,500 2,370 300 150 1052 4,852 470 2,990 Non-current liabilities 10% Loan note (redeemable 31 May 20X5) Current liabilities 100 450 365 Trade payables Taxation 180 145 58 688 5,540 Bank overdraft 510 3,600 Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the following. GHc'000 1,042 (10) 1.032 (180) 852 Operating profit Interest payable Profit before taxation Taxation Profit for financial year b) During the year dividends paid were GHC270,000, c) Profit before taxation had been arrived at after charging GHc700,000 for depreciation on non-current assets. d) During the year non-current assets with a net book value of GHC200,000 were sold for GHc180,000. Required: Prepare a statement of cash flows for Snowdrop for the year ended 31 May 2020 in accordance with IAS 7 Statement of cash flows, using the indirect method.
The following information has been extracted from the draft financial statements of Snowdrop, a limited liability company. SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 2020 2019 GHe'000 GHe'000 GHe'000 GHe'000 Non-current assets 4,600 2,700 Current assets Inventory Trade receivables 580 00 360 230 170 940 900 Bank Total assets 5,540 3,600 Equity and liabilities Equity Ordinary share capital Capital Surplus Retained earnings 3,500 2,370 300 150 1052 4,852 470 2,990 Non-current liabilities 10% Loan note (redeemable 31 May 20X5) Current liabilities 100 450 365 Trade payables Taxation 180 145 58 688 5,540 Bank overdraft 510 3,600 Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the following. GHc'000 1,042 (10) 1.032 (180) 852 Operating profit Interest payable Profit before taxation Taxation Profit for financial year b) During the year dividends paid were GHC270,000, c) Profit before taxation had been arrived at after charging GHc700,000 for depreciation on non-current assets. d) During the year non-current assets with a net book value of GHC200,000 were sold for GHc180,000. Required: Prepare a statement of cash flows for Snowdrop for the year ended 31 May 2020 in accordance with IAS 7 Statement of cash flows, using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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