The following information has been extracted from the draft financial statements of Snowdrop, a limited liability company. SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 2020 2019 GHe'000 GHe'000 GHe'000 GHe'000 Non-current assets 4,600 2,700 Current assets Inventory Trade receivables 580 00 360 230 170 940 900 Bank Total assets 5,540 3,600 Equity and liabilities Equity Ordinary share capital Capital Surplus Retained earnings 3,500 2,370 300 150 1052 4,852 470 2,990 Non-current liabilities 10% Loan note (redeemable 31 May 20X5) Current liabilities 100 450 365 Trade payables Taxation 180 145 58 688 5,540 Bank overdraft 510 3,600 Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the following. GHc'000 1,042 (10) 1.032 (180) 852 Operating profit Interest payable Profit before taxation Taxation Profit for financial year b) During the year dividends paid were GHC270,000, c) Profit before taxation had been arrived at after charging GHc700,000 for depreciation on non-current assets. d) During the year non-current assets with a net book value of GHC200,000 were sold for GHc180,000. Required: Prepare a statement of cash flows for Snowdrop for the year ended 31 May 2020 in accordance with IAS 7 Statement of cash flows, using the indirect method.
The following information has been extracted from the draft financial statements of Snowdrop, a limited liability company. SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY 2020 2019 GHe'000 GHe'000 GHe'000 GHe'000 Non-current assets 4,600 2,700 Current assets Inventory Trade receivables 580 00 360 230 170 940 900 Bank Total assets 5,540 3,600 Equity and liabilities Equity Ordinary share capital Capital Surplus Retained earnings 3,500 2,370 300 150 1052 4,852 470 2,990 Non-current liabilities 10% Loan note (redeemable 31 May 20X5) Current liabilities 100 450 365 Trade payables Taxation 180 145 58 688 5,540 Bank overdraft 510 3,600 Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the following. GHc'000 1,042 (10) 1.032 (180) 852 Operating profit Interest payable Profit before taxation Taxation Profit for financial year b) During the year dividends paid were GHC270,000, c) Profit before taxation had been arrived at after charging GHc700,000 for depreciation on non-current assets. d) During the year non-current assets with a net book value of GHC200,000 were sold for GHc180,000. Required: Prepare a statement of cash flows for Snowdrop for the year ended 31 May 2020 in accordance with IAS 7 Statement of cash flows, using the indirect method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q2
The following information has been extracted from the draft financial statements of
Snowdrop, a limited liability company.
SNOWDROP STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY
2020
2019
GHe'000
4,600
GHe'000
GHc000
GHe'000
Non-current assets
2,700
Current assets
Inventory
580
500
Trade receivables
360
230
Bank
170
940
900
Total assets
5,540
3,600
Equity and liabilities
Equity
Ordinary share capital
Capital Surplus
Retained earnings
3,500
2,370
300
150
1.052
4,852
470
2,990
Non-current liabilities
100
10% Loan note (redeemable 31 May 20X5)
Current liabilities
365
145
Trade payables
450
Taxation
180
58
688
5,540
Bank overdraft
510
3,600
Additional information:
a) The statement of profit or loss for the year ended 31 May 2020 shows the following.
GHc'000
1,042
(10)
1.032
(180)
852
Operating profit
Interest payable
Profit before taxation
Taxation
Profit for financial year
b) During the year dividends paid were GHc270,000.
c) Profit before taxation had been arrived at after charging GHc700,000 for depreciation
on non-current assets.
d) During the year non-current assets with a net book value of GHc200,000 were sold
for GHc180,000.
Required:
Prepare a statement of cash flows for Snowdrop for the year ended 31 May 2020 in
accordance with IAS 7 Statement of cash flows, using the indirect method.
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