The Statement of financial position of Calvert Ltd at 31 December 2019 is as follow Statement of financial position at 31 December 2019 2018 £000 £000 Non current assets 50 1,790 Investment at cost 100 Plant and equipment – cost Less: accumulated depreciation 2,470 850 1,620 1,670 630 1,160 1,260 Current assets Inventory 740 510 Receivables 1,010 640 Bank 330 1,750 3,420 1,480 2,740 Total assets Equity Equity £1 shares Share premium Revaluation reserve Retained earnings 500 400 140 100 300 300 730 800 1,670 1,600 Current liabilities Trade payables Corporation tax 660 530 110 Bank overdraft 190 850 640 Non current liabilities Long term loan 900 500 Total liabilities 1,750 3,420 1,140 Total equity and liabilities 2,740 The following information is available: i. Loss before taxation: £50,000. ii. Plant and equipment with an original cost of £120,000 and accumulated depreciation of £80,000 was sold in February 2019 for £30,000. iii. Interest paid in the year totalled £70,000. iv. No dividends were paid. v. There is no tax liability for the year to 31 December 2019. The tax liability fo the year to 31 December 2018 was underestimated by £20,000. Required: (a) Prepare a statement of cash flow for Calvert Ltd for the year to 31 December
The Statement of financial position of Calvert Ltd at 31 December 2019 is as follow Statement of financial position at 31 December 2019 2018 £000 £000 Non current assets 50 1,790 Investment at cost 100 Plant and equipment – cost Less: accumulated depreciation 2,470 850 1,620 1,670 630 1,160 1,260 Current assets Inventory 740 510 Receivables 1,010 640 Bank 330 1,750 3,420 1,480 2,740 Total assets Equity Equity £1 shares Share premium Revaluation reserve Retained earnings 500 400 140 100 300 300 730 800 1,670 1,600 Current liabilities Trade payables Corporation tax 660 530 110 Bank overdraft 190 850 640 Non current liabilities Long term loan 900 500 Total liabilities 1,750 3,420 1,140 Total equity and liabilities 2,740 The following information is available: i. Loss before taxation: £50,000. ii. Plant and equipment with an original cost of £120,000 and accumulated depreciation of £80,000 was sold in February 2019 for £30,000. iii. Interest paid in the year totalled £70,000. iv. No dividends were paid. v. There is no tax liability for the year to 31 December 2019. The tax liability fo the year to 31 December 2018 was underestimated by £20,000. Required: (a) Prepare a statement of cash flow for Calvert Ltd for the year to 31 December
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Statement of
Transcribed Image Text:The Statement of financial position of Calvert Ltd at 31ı December 2019 is as follows
Statement of financial position at 31 December
2019
2018
£000
£000
Non current assets
Investment at cost
50
100
Plant and equipment – cost
Less: accumulated depreciation
2,470
1,790
850
630
1,620
1,670
1,160
1,260
Current assets
Inventory
Receivables
740
510
1,010
640
Bank
330
1,750
3,420
1,480
2,740
Total assets
Equity
Equity £1 shares
Share premium
Revaluation reserve
Retained earnings
500
400
140
100
300
300
730
800
1,670
1,600
Current liabilities
Trade payables
Corporation tax
Bank overdraft
660
530
110
190
850
640
Non current liabilities
Long term loan
900
500
Total liabilities
1,750
1,140
Total equity and liabilities
3,420
2,740
The following information is available:
i. Loss before taxation: £50,000.
ii. Plant and equipment with an original cost of £120,000 and accumulated
depreciation of £80,000 was sold in February 2019 for £30,000.
iii. Interest paid in the year totalled £70,000.
iv. No dividends were paid.
v. There is no tax liability for the year to 31 December 2019. The tax liability for
the year to 31 December 2018 was underestimated by £20,000.
Required:
(a) Prepare a statement of cash flow for Calvert Ltd for the year to 31 December
2019.
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