You have been provided with the following extracts of the financial statements of ProvisionLtd for the year ended 31 December 2018.Statement of financial position for the year ended 31 December 2018Non-current assetsCurrent assetsInventoriesTrade receivablesCashTotal assetsEquity and LiabilitiesShareholders equity andreservesContributed equity (ordinaryshares)Retained incomePreference shares -Non-current liabilitiesLoanCurrent liabilitiesTrade payablesDividends payableInland RevenueTotal equity and liabilitiesNote1SSSSSS$SSSSSSSSSS2018328,000 S498,000 S170,000 S90,000 $62,000 $ 55,00018,000 $5,000$201780,000 $48,000 $12,000 $20,000 $286,000170,000110,000418,000 $ 290,000170,000 $198,000 $50,000 $SS456,000110,000130,00050,000100,00066,00044,00010,00012,000498,000 S 456,000Extract from the statement of profit and loss for the year ended 31 December 2018:Gross revenueS375,000Cost of sales$217,000S158,000Net profit before taxationTaxation73,000Net profit for the year85,000 Statement of changes in equity for the year ended 31 December 2018Ordinary shares Preference shares Retained income TotalBalance 31 December 2017 $ 110,000 $130,000 $ 290,00050,000 $Changes in equity for 2018:Net profit for the yearDividends paidPreference dividendsNew share issueBalance 31 December 2018 $Additional information:1. Non-current assets$Land and buildingsPlant and machineryCost60,000170,00020182017$ 180,000 $140,000190,000$ 218,000 $$ 398,000 $ 330,000$2018$$70,000$ 70,000-$Accumulated depreciation50,000 $2017$44,000$ 44,00085,000 $7,000 -$10,000 -$198,000 $ 418,000$5,0007,00010,0002018$180,000$ 148,000$328,000Carrying value• During the year, 60 000 ordinary shares were issued at $ 1 per share.• Interest paid amounted to $ 5 000 and investment income was $ 2 000.2017$ 140,000$ 146,000$ 286,000• A small land area costing $ 25 000 was sold for a profit of $ 8 000 on 30 March 2018.• Plant and machinery costing $ 40 000 was acquired.• Plant and machinery with a book value of $ 8 000 was sold at a loss of $ 4 000.REQUIRED:Prepare the statement of cash flow for Provision Ltd for the year ended 31 December 2018using the indirect method.

Statement of Cash Flow - Statement of Cash Flow includes inflow and outflow of cash in the financial…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please refer to the financial data for Link, Incorporation above. What is Link’s profit margin for 2021? That. Right
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Dec. 31, 2020 Dec. 31, 2019 Assets Current assets: Cash and cash equivalents $248,005 $419,465 Accounts receivable 38,283 34,839 Inventory 15.043 15,332 Prepaid expenses and other current assets 39,965 34,795 Income tax receivable 58,152 16,488 Investments 415,199 338,592 Total current assets 814.647 859,511 Property, plant, & equipment, net 1,217.220 1,106,984 Long-term investments 622,939 496.106 Other assets 70,260 64,716 Total assets $2,725,066 $2,527,317 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $85,709 $69,613 Accrued payroll and benefits 64,958 73,894 Accrued liabilities 129,275 102,203 Total current liabilities 279,942 245,710 Deferred liabilities 284.267 240,975 Other liabilities 32.883 28,263 Total liabilities 597,092 514,948 Shareholders' equity: Common stock 358 354 Additional paid-in capital 954,988 861.843 Retained earnings 1,172.628 1,150,172 Total shareholders' equity 2,127,974 2,012.369 Total liabilities and shareholders' equity…
The following data are taken from the records of Grouper Company. Cash Current assets other than cash Long-term debt investments Plant assets Accumulated depreciation Current liabilities Bonds payable Common stock Retained earnings Additional information: 1. 2. 3. 4. 5. December 31, December 31, 2025 2024 $15,100 84,300 10,000 334,300 $443,700 $20,100 39,900 74,800 255,400 53,500 $443,700 $8,000 60,600 52,500 214,900 $336,000 $40,400 21,800 -0- 255,400 18,400 $336,000 Held-to-maturity debt securities carried at a cost of $42,500 on December 31, 2024, were sold in 2025 for $34,300. The loss (not unusual) was incorrectly charged directly to Retained Earnings. Plant assets that cost $50,300 and were 80% depreciated were sold during 2025 for $8,000. The loss was incorrectly charged directly to Retained Earnings. Net income as reported on the income statement for the year was $57,100. Dividends paid amounted to $11,740. Depreciation charged for the year was $19,940.
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The current assets and liabilities sections of the comparative balance sheets of Regent Inc., a private entity reporting under ASPE, at December 31 are presented below, along with the income statement: REGENT INC. Comparative Balance Sheet Accounts 2024 2023 Cash $27,720 $29,400 Accounts receivable 17,920 11,480 Inventory 9,100 12,880 Prepaid expenses 2,100 1,624 Accounts payable 12,040 10,080 Accrued expenses payable 1,400 2,240 Dividends payable 6,720 4,760 Income tax payable 1,904 3,304 REGENT INC. Income Statement Year Ended October 31, 2024 Sales $175,000 Cost of goods sold 109,200 Gross profit 65,800 Operating expenses $24,640 Depreciation expense 6,440 Loss on sale of equipment 2,240 33,320 Profit before income tax 32,480 Income tax expense 8,120 Profit for the year $24,360 Instructions Prepare the operating section of the cash flow statement using the direct method.
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Q2. The following information has been extracted from the draft financial statements of Moba limited.. MOBA LIMITED STATEMENTS OF FINANCIAL POSITION AS AT 31 JUNE 2021 2022 Non-current assets Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Equity Ordinary share capital Share premium Retained earnings Non-current liabilities 10% Loan note (redeemable 31 June 2022) Current liabilities Trade payables Taxation Bank overdraft Operating profit Interest payable Profit before taxation K'000 Taxation 450 180 58 580 360 0 K'000 Κ'000 4,600 940 5.540 3,500 300 1,052 4,852 0 688 5.540 Additional information (a) The statement of profit or loss for the year ended 31 June 2022 shows the following. 500 230 170 K'000 Profit for financial year (b) During the year dividends paid were K270,000. (c) Profit before taxation had been arrived at after charging K700,000 for depreciation on DANCON assets. (d) During the year non-current assets with a net book value of K200,000…
The following are extracts from the financial records of ABC Ltd for the year ended31 August 2021.ABC LtdExtract from the Statement of financial statement as at 31 August 2021 31 August 2021 - R 30 August 2020 - R Bank Inventories - Trade Goods Trade Recievables Trade payables Prepaid Expenses Prepaid Expenses Accrued Expenses; interest Accrued Expenses; other SARS - income tax payable Dividens payable 50000 22000 77000 44000 1800 1000 5700 8000 1500 20000 30000 69000 46000 1200 2400 4400 3000 2700 ABC LtdExtract from the Statement of profit or loss and other comprehensive incomefor the year ended 31 August 2021 Sales 592000 Cost of sales (301000 Gross profit 291000 Profit on sale of Equipment 9000 Depreciation 41000 Interest Expense 2600 Income tax expense 15200 Profit for the year 110300 Additional information: 1. The dividends declared for the current year is R2 400 Required:Prepare only the “Cash flows from operating activities” section…
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