Below are extracts from the financial statements of Charlton Ltd:Statement of profit or loss for the year ended 31 December 2020Revenue214,550Cost of sales(182,000)Gross profit32,550Investment income4,760Loss on disposal(40)(6,300)(3,500)Distribution costsAdministrative expensesProfit from operations27,470Finance costs(2,800)Profit before tax24,670(2,100)22,570Income tax expenseProfit for the periodStatements of financial position31 December 202031 December 2019AssetsNon-current assetsProperty, plant and equipment15,9205,950Investments17,50017,50033,42023,45031 December 202031 December 2019AssetsNon-current assetsProperty, plant and equipment15,9205,950Investments17,50017,50033,42023,450Current assetsInventories7,00013,650Trade and other receivables13,3008,400Cash and cash equivalents2,8701,12023,17023,170Total assets56,59046,620Equity and liabilitiesCapital and reservesShare capital7,0006,300Share premiumRetained earnings3,5002,45023.8309,66034,33018,410Non-current liabilitiesLong term borrowings16,1007,280Current liabilitiesTrade and other payables1,75013,230Interest payable1,610700Taxation2,8007,0006,16020,930Total equity and liabilities56,59046,620Additional information:1. Profit from operations is after charging depreciation on the property, plant and equipmentof £3,150.2. Plant and machinery costing £560 and with accumulated depreciation of £420, was soldduring the year.3. The receivables at the end of 2020 includes £700 of interest receivable. There was noequivalent balance at the beginning of the year.4. Investment income of £4,760 is made up of £2,100 interest receivable and £2,660dividends received.5. On the 1 April 2020 Charlton Ltd paid the final dividend for financial year 2019 which wasfinalised at £6,300. On the 1 July 2020 Charlton Ltd also paid an interim dividend forfinancial year 2020 for £2,100. At the end the current financial year Charlton Ltd proposeda final dividend of £7,200.Required:Using the pro-forma in your spreadsheet answer booklet provided prepare a statement of cashflows for Charlton Ltd for the year ended 31 December 2020 in compliance with IAS 7 Statementof Cash Flows.

Cash flow statement shows the cash generated from operation and financing needs for investment…

Answered: Current liabilities Trade and other…

Current liabilities Trade and other payables nterest payable Taxation 1,750 13,230 1,610 700 2,800 7,000 6,160 20,930 Tatal eguity and liahilities 56 590 46.629

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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Do the calculations in excel, attach excel screenshots and explain the steps and formulas used for solving the problem. Following are the particulars available
The following information appeared in the annual financial statements of Hitashi Projects Limited:Statement of Comprehensive Income for the year ended 31 December 2019 R Revenue 1 250 000Direct costs (786 000) Gross profit 464 000 Operating expenses (124 000) Operating profit 340 000 Interest expense (15 000) Profit before tax 325 000 Income tax (97 500) Profit after tax 227 500 Statement of Financial Position as at 31 December 2019Assets R Non-current assets 314 000 Current assets 386 000 Total assets 700 000 Equity and liabilities Shareholders’ equity 350 000 Non-current liabilities 205 000 Current liabilities 145 000 Total equity and liabilities 700 000 Note • Current assets (R386 000) include accounts receivable of R160 000, inventories of R80 000 and cash of R146 000. • Inventories as at 31 December 2018 amounted to R130 000. • Current liabilities comprise accounts payable only. • All direct costs and revenues are on credit.Required: Calculate the following ratios using the…
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