Data extracts from Dormer's accounts are shown below Ye-Dec-21 Ye-Dec-20 Land & Buildings 279,000 228,000 Plant 75,000 72,000 Inventory Receivables Cash at Bank Total Assets Share Capital Reserves Long term loans Payables Taxation Interest Total Liabilities & Equity Operating Profits Interest Taxation 65,000 53,000 52,000 63,000 64,000 14,000 535,000 430,000 165,000 115,000 195,000 84,000 110,000 158,000 51,000 62,000 8,000 5,000 6,000 6,000 535,000 430,000 37,000 -5,000 -11,000 21,000 Profit for the Year Notes for the year to 31-Dec-21: Annual depreciation charges were £30,000. Plant (cost £15,000/depreciation £8,000) was sold for £4,000. Buildings costing £80,000 were sold for £110,000. A warehouse had been revalued by £60,000. Buildings/warehouses are not depreciated. Required: a) Prepare a statement of cashflows for Ye-Dec-21. b) Reconcile the annual movement in non-current assets. c) For Ye-Dec-21 calculate: Gearing, Current, and Quick Asset ratios

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Data extracts from Dormer's accounts are shown below
Ye-Dec-21
Ye-Dec-20
Land & Buildings
279,000
228,000
Plant
75,000
72,000
Inventory
Receivables
Cash at Bank
Total Assets
Share Capital
Reserves
Long term loans
Payables
Taxation
Interest
Total Liabilities & Equity
Operating Profits
Interest
Taxation
65,000
53,000
52,000
63,000
64,000
14,000
535,000
430,000
165,000
115,000
195,000
84,000
110,000
158,000
51,000
62,000
8,000
5,000
6,000
6,000
535,000
430,000
37,000
-5,000
-11,000
21,000
Profit for the Year
Notes for the year to 31-Dec-21:
Annual depreciation charges were £30,000.
Plant (cost £15,000/depreciation £8,000) was sold for £4,000.
Buildings costing £80,000 were sold for £110,000.
A warehouse had been revalued by £60,000.
Buildings/warehouses are not depreciated.
Required:
a) Prepare a statement of cashflows for Ye-Dec-21.
b) Reconcile the annual movement in non-current assets.
c) For Ye-Dec-21 calculate:
Gearing, Current, and Quick Asset ratios
Transcribed Image Text:Data extracts from Dormer's accounts are shown below Ye-Dec-21 Ye-Dec-20 Land & Buildings 279,000 228,000 Plant 75,000 72,000 Inventory Receivables Cash at Bank Total Assets Share Capital Reserves Long term loans Payables Taxation Interest Total Liabilities & Equity Operating Profits Interest Taxation 65,000 53,000 52,000 63,000 64,000 14,000 535,000 430,000 165,000 115,000 195,000 84,000 110,000 158,000 51,000 62,000 8,000 5,000 6,000 6,000 535,000 430,000 37,000 -5,000 -11,000 21,000 Profit for the Year Notes for the year to 31-Dec-21: Annual depreciation charges were £30,000. Plant (cost £15,000/depreciation £8,000) was sold for £4,000. Buildings costing £80,000 were sold for £110,000. A warehouse had been revalued by £60,000. Buildings/warehouses are not depreciated. Required: a) Prepare a statement of cashflows for Ye-Dec-21. b) Reconcile the annual movement in non-current assets. c) For Ye-Dec-21 calculate: Gearing, Current, and Quick Asset ratios
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