QUESTION 2 The following information has been taken from Sacha's accounts. Income Statement for the year ending 31st December 2019.” “ £ Revenue 1,372,008 Cost of Sales (916,502) Gross Profit 455,506 Selling and distribution expenses (excluding depreciation) (110,000) Administration expenses (excluding depreciation) (86,000) Operating expenses (90,540) Depreciation (84,480) Operating Profit 84,486 Interest receivable 7,428 Interest payable (3,714) Profit for the year 88,200” “Statements of financial position as at 31st December 2018 and 31st December 2019. “ “2018 2019 £ £ £ £ Fixed Assets Buildings at cost 290,000 290,000 Accumulated depreciation (112,000) (141,000) Buildings - Net Book Value 178,000 149,000 Motor Vans - cost 134,000 176,000 Accumulated depreciation (41,640) (97,120) Motor vans - Net book value 92,360 78,880 270,360 227,880 Current Assets Inventory 151,100 157,544 Trade receivables 10,500 14,510 Bank - 5,612 Current liabilities Trade payables (185,480) (164,856) Bank overdraft (14,962) - Net current assets (38,842) 12,810 Non-current liabilities Long-term loan (80,000) (40,000) 151,518 200,690 Capital Capital brought forward 152,000 151,518 Profits for the year 69,800 88,200 Drawings (70,282) (39,028) 151,518 200,690” “Required:” “Prepare a cashflow statement using the indirect method for the year ending 31st December 2019, showing clearly how cash and cash equivalents changed during the year.”

QUESTION 2 The following information has been taken from Sacha's accounts. Income Statement for the year ending 31st December 2019.” “ £ Revenue 1,372,008 Cost of Sales (916,502) Gross Profit 455,506 Selling and distribution expenses (excluding depreciation) (110,000) Administration expenses (excluding depreciation) (86,000) Operating expenses (90,540) Depreciation (84,480) Operating Profit 84,486 Interest receivable 7,428 Interest payable (3,714) Profit for the year 88,200” “Statements of financial position as at 31st December 2018 and 31st December 2019. “ “2018 2019 £ £ £ £ Fixed Assets Buildings at cost 290,000 290,000 Accumulated depreciation (112,000) (141,000) Buildings - Net Book Value 178,000 149,000 Motor Vans - cost 134,000 176,000 Accumulated depreciation (41,640) (97,120) Motor vans - Net book value 92,360 78,880 270,360 227,880 Current Assets Inventory 151,100 157,544 Trade receivables 10,500 14,510 Bank - 5,612 Current liabilities Trade payables (185,480) (164,856) Bank overdraft (14,962) - Net current assets (38,842) 12,810 Non-current liabilities Long-term loan (80,000) (40,000) 151,518 200,690 Capital Capital brought forward 152,000 151,518 Profits for the year 69,800 88,200 Drawings (70,282) (39,028) 151,518 200,690” “Required:” “Prepare a cashflow statement using the indirect method for the year ending 31st December 2019, showing clearly how cash and cash equivalents changed during the year.”

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15EA: The following select account data is taken from the records of Reese Industries for 2019. A. Use the...

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QUESTION 2

The following information has been taken from Sacha's accounts.

Income Statement for the year ending 31st December 2019.”

	“ £
Revenue	1,372,008
Cost of Sales	(916,502)
Gross Profit	455,506

Selling and distribution expenses (excluding depreciation)	(110,000)
Administration expenses (excluding depreciation)	(86,000)
Operating expenses	(90,540)
Depreciation	(84,480)
Operating Profit	84,486

Interest receivable	7,428
Interest payable	(3,714)
Profit for the year	88,200”

“Statements of financial position as at 31st December 2018 and 31st December 2019. “

				“2018	2019
	£	£	£	£
Fixed Assets
Buildings at cost	290,000		290,000
Accumulated depreciation	(112,000)		(141,000)
Buildings - Net Book Value		178,000		149,000

Motor Vans - cost	134,000		176,000
Accumulated depreciation	(41,640)		(97,120)
Motor vans - Net book value		92,360		78,880
		270,360		227,880
Current Assets
Inventory	151,100		157,544
Trade receivables	10,500		14,510
Bank	-		5,612

Current liabilities
Trade payables	(185,480)		(164,856)
Bank overdraft	(14,962)		-
Net current assets		(38,842)		12,810

Non-current liabilities
Long-term loan		(80,000)		(40,000)
		151,518		200,690
Capital
Capital brought forward	152,000		151,518
Profits for the year	69,800		88,200
Drawings	(70,282)		(39,028)
		151,518		200,690”

“Required:”

“Prepare a cashflow statement using the indirect method for the year ending 31st December 2019, showing clearly how cash and cash equivalents changed during the year.”

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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