During the year, Y plc paid £45,000 for a new piece of machinery. A dividend of £33,000 was paid during the year. 1. Prepare a statement of cash flow for Y plc for the year ended 31 December 2012 in accordance with the requirements of IAS 7. 2. Comment on the purpose of a statement of cash flow illustrating your points using the statement prepared in part (a) of the question.
During the year, Y plc paid £45,000 for a new piece of machinery. A dividend of £33,000 was paid during the year. 1. Prepare a statement of cash flow for Y plc for the year ended 31 December 2012 in accordance with the requirements of IAS 7. 2. Comment on the purpose of a statement of cash flow illustrating your points using the statement prepared in part (a) of the question.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Y plc's income statement for the year ended 31 December 2012 and statements of financial position as at 31 December 2011 and 31 December 2012 were as follows:
Y plc - Income statement for the year ended 31 December 2012
£’000 | £’000 | |
Sales revenue | 360 | |
Raw materials consumed | (35) | |
Staff costs | (47) | |
(59) | ||
Loss on disposal of machinery | (9) | |
(150) | ||
Operating profit | 210 | |
Interest payable | (14) | |
Profit before tax | 196 | |
Income tax expense | (62) | |
Profit after tax | 134 |
Y plc –
2012 | 2012 | 2011 | 2011 | |
£'000 | £'000 | £'000 | £'000 | |
Non-current assets | ||||
Cost | 798 | 780 | ||
Depreciation | (159) | (112) | ||
639 | 668 | |||
Current asset | ||||
Inventory | 12 | 10 | ||
Trade receivables | 33 | 25 | ||
Bank | 24 | 28 | ||
69 | 63 | |||
708 | 731 | |||
Equity and liabilities | ||||
Share capital | 180 | 170 | ||
Share premium | 18 | 12 | ||
Retained earnings | 358 | 257 | ||
556 | 439 | |||
Non-current liabilities | ||||
Long-term loans | 100 | 250 | ||
Current liabilities | ||||
Trade payables | 6 | 3 | ||
Income tax | 46 | 39 | ||
52 | 42 | |||
708 | 731 | |||
During the year, Y plc paid £45,000 for a new piece of machinery.
A dividend of £33,000 was paid during the year.
1. Prepare a statement of cash flow for Y plc for the year ended 31 December 2012 in accordance with the requirements of IAS 7.
2. Comment on the purpose of a statement of cash flow illustrating your points using the statement prepared in part (a) of the question.
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