Q2 The Following Information Has Been Extracted From The Draft Financial Statements Of Snowdrop A Limited Liability Com 1 (149.64 KiB) Viewed 127 times
Q2 The Following Information Has Been Extracted From The Draft Financial Statements Of Snowdrop A Limited Liability Com 2 (162.99 KiB) Viewed 127 times
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 GHc'000 2019 GHC'000 4,600 2020 GHC'000 GHc'000 2.700 580 360 170 500 230 900 940 5,540 3.600 Non-current assets Current assets Inventory Trade receivables Bank Total assets Equity and liabilities Equity Ordinary share capital Capital Surplus Retained earnings 3,500 300 1,052 4,852 2,370 150 470 2,990 100 0 Non-current liabilities 10% Loan note (redeemable 31 May 20X5) Current liabilities Trade payables Taxation Bank overdraft 365 145 450 180 58 688 5,540 510 3,600
Additional information: a) The statement of profit or loss for the year ended 31 May 2020 shows the following. Operating profit Interest payable Profit before taxation Taxation Profit for financial year GHc'000 1,042 (10) 1.032 (180) 852 b) During the year dividends paid were GHc270,000. 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.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!