Financial statement calculation question.

Business Finance

CATS

Question Description

I'm working on a accounting test / quiz prep and need a sample draft to help me learn.

In the financial statement question, I need it to be with calculations nicely written in its format so it could be easy to understand. In the section B question, the answer should be in 2-3 paragraphs.

If any questions, please ask me.

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The statement of financial position of Ninety Ltd for the last two years are: Statement of Financial position as at 31 December 20-8 20-8 £000 Non-current assets Cost Depreciation to date Current assets Inventory Trade receivables Cash and equivalents 8,570 (1,569) ______ £000 £000 £000 7,001 7,825 (1,321) ______ 6,504 118 333 64 ______ TOTAL ASSETS EQUITY Ordinary shares Share premium Retained earnings TOTAL EQUITY Non-current liabilities Loans Current liabilities Trade payables Tax liability 20-7 129 301 107 ______ 515 ______ 7,516 ______ 537 ______ 7,041 ______ 1,700 280 4,162 ______ 6,142 1,500 250 4,275 ______ 6,025 1,002 687 94 278 ______ 78 251 ______ 372 ______ 7,516 ______ 329 ______ 7,041 ______ Further information: • Additional non-current assets were purchased at a cost of £784,000. • Non-current assets, which had been depreciated by £28,000 were sold for £14,000. • There were no other disposals or purchases of non-current assets. • Taxation paid totalled £353,000. • Dividends paid totalled £1,386,000. • The income statement for the year ended 31 December 20-8 included: Depreciation charges £276,000 Finance costs £152,000 Taxation provision £380,000 Required: Prepare the statement of cash flows for Ninety Ltd for the year ended 31 December 20-8. Section B 1. Explain how it is possible for a business to make a profit but have a decrease in cash resources. Use examples from the statement of cash flows to support your answer. ...
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