Prepare Cashflow Statement for ABC company from the following information. Showing your workings.
Prepare Cashflow Statement for ABC company from the following information. Showing your workings.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
Related questions
Question
Prepare Cashflow Statement for ABC company from the following information. Showing your workings. (Unit: CU1000)
![ABC's statement of financial position
As at March 31, 20X7
ASSETS
31 March 20X7
31 March 20X6
I. Non-current assets
1. Properties, plants and equipment
2. Intangible assets
500,000
100,000
500,000
95,000
3. Non-current investments
100,000
II. Current assets
1. Inventories
50,000
80,000
205,000
935,000
130,000
2. Trade receivables
120,000
3. Cash and cash equivalents
327,000
Total assets
1,272,000
EQUITY AND LIABILITIES
I. Equity
1.Share capital
2. Retained earnings
500,000
250,000
700,000
420,000
II. Non-current liabilities
S
1. Long-term borrowings: 10% bank loan
50,000
100,000
III. Current liabilities
1. Trade payables
50,000
5,000
30,000
935,000
45,000
2. Accrued rental
7,000
3. Provisions for taxation
50,000
Total equity and liabilities
1,272,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ca2ce60-3a97-4d5a-9a57-8bef6d8dc14a%2Fdb46e289-3eb2-4730-967c-afbcfe7acfbb%2Flqc4kgg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC's statement of financial position
As at March 31, 20X7
ASSETS
31 March 20X7
31 March 20X6
I. Non-current assets
1. Properties, plants and equipment
2. Intangible assets
500,000
100,000
500,000
95,000
3. Non-current investments
100,000
II. Current assets
1. Inventories
50,000
80,000
205,000
935,000
130,000
2. Trade receivables
120,000
3. Cash and cash equivalents
327,000
Total assets
1,272,000
EQUITY AND LIABILITIES
I. Equity
1.Share capital
2. Retained earnings
500,000
250,000
700,000
420,000
II. Non-current liabilities
S
1. Long-term borrowings: 10% bank loan
50,000
100,000
III. Current liabilities
1. Trade payables
50,000
5,000
30,000
935,000
45,000
2. Accrued rental
7,000
3. Provisions for taxation
50,000
Total equity and liabilities
1,272,000
![Additional information:
1. Properties, plants and equipment including:
31 March 20X7
31 March 20X6
Equipment
230,000
200,000
Furniture
270,000
300,000
Total
500,000
500,000
2. During the year, equipment with cost of 80,000 was purchased. Loss on sale of equipment
amounted to 5,000.
3. Depreciation charged on equipment and furniture of 15,000 and 30,000 relatively.
Amortisation of intangible assets is at 5% on reducing balance.
4. Bank loan 50,000 was repaid on 31 March 20X7.
5. Dividend declared and fully paid for the year 20X5-20X6 was 50,000.
6. Provision for taxation of the previous year is fully paid and all of provision for taxation of
current year has not been paid.
7. During the year, the company made a 2 for 5 rights issuance.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ca2ce60-3a97-4d5a-9a57-8bef6d8dc14a%2Fdb46e289-3eb2-4730-967c-afbcfe7acfbb%2F704bssq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Additional information:
1. Properties, plants and equipment including:
31 March 20X7
31 March 20X6
Equipment
230,000
200,000
Furniture
270,000
300,000
Total
500,000
500,000
2. During the year, equipment with cost of 80,000 was purchased. Loss on sale of equipment
amounted to 5,000.
3. Depreciation charged on equipment and furniture of 15,000 and 30,000 relatively.
Amortisation of intangible assets is at 5% on reducing balance.
4. Bank loan 50,000 was repaid on 31 March 20X7.
5. Dividend declared and fully paid for the year 20X5-20X6 was 50,000.
6. Provision for taxation of the previous year is fully paid and all of provision for taxation of
current year has not been paid.
7. During the year, the company made a 2 for 5 rights issuance.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning