Question

Financial Accounting

E3 Set out below are the financial statements of Amal company You controller, faced with the task of implementing KAS 7 Statement of a Amal Company Statement of profit or loss for the year ended 31 December 20X2 Rs.000 Revenue 2,553 Cost of Sales 1.814) Gross Profit 739 Distribution Costs (125) Administrative Expenditures (264) 350 Interest received Interest paid - Profit before Tax - - Taxation (140) Profit for the year 100

Cash flow statement.
why is my end of the period cash balance different, from the question?

Answer 1

Prepare Cash Flow statement for the year: Amt $ Amt 160,000 90.000 13.000 9.000 (5,000)S 267,000 (48.000) (75,000) (50,000) 8.000 (13,000) 10.000 99,000 Statement of cash flow Cash flow from operating activity: Net profit Add: Non cash expenses Depreciation $ Loss on sale of fixtures ($45,000-$32000) Trasfer to Reserve (100,000-91,000) Profit on sale of non curret investments (30,000-25,000) S Working capital adjustments: Inventory (102,000-150,000) Trade receivables (315,000-390,000) IS Short terms investments (0-50,000) Trade payables (119,000-127,000) Bank overdraft (98,000-85,000) S Provision for tax (110,000-120,000) S Cash inflow from operating activities Cash inflow from Investing activities: Proceeds of non current investments IS Proceeds of sale of furtniture and fittings $ Purchases of assets S Cash flow from investing activities Cash flow from financing activities: Issues of shares (50,000x$1.20) $ Borrowings of loan (170,000-50,000=120,000) Intangible (250,000-200,000= 50,000) (120,000-50,000=70,000) $ Dividends paid $ Cash flow from financing activities Net cash Inflow Add: Cash balance at the year beginning Cash balance at the end 30.000 32.000 (210,000) S (148,000) 60.000 70.000 (80,000) S $ 50,000 1.000 1,000 2,000 S $

Workings Cost of the plant, Property and Equipem 595,000 Less: Cost of Fixtures and fittings | 85000 Net cost of PPE 510,000 Less: Ending Cost of PPE 720000 Purchases 210,000 Accumulated Dep beginning Less: Sold Fittings Net Dep Less: Accumulated Depending Depreciation for current year 290,000 45000 245,000 345,000 - 100,000