Question

A2. The following summary financial statements relate to Nadal Ltd: Statements of Financial Position of Nadal Ltd as 31/10/2013 and 31/10/2014

Answer 1

Nadal Ltd
Statement of Cash Flows (Indirect Method)
For the Year ended 31/10/2014
(Amount in '000)
Cash Flow from opearating activities:
Net Income		747.00
Add/(Less) non cash effects on operating activities
Depreciation expense - Plant & Equipment	171.00
Loss on Sale of Motor Vehicle	22.50
Increase in Inventory	(489.60)
Decrease in Trade and Other Receivable	57.15
Increase in Trade and Other Payables	474.75
Decrease in Tax Liability	(101.25)	134.55
Net Cash provided by operating activities		881.55
Cash flow from Investing Activities
Purchase of Equipment	(954.00)
Sale of Motor Vehicle	40.50
Net Cash used by Investing activities		(913.50)
Cash Flow from Financing Activities
10% Bank Loan Paid	(90.00)
Cash dividend paid	(472.50)
Proceeds from Ordinary Share Capital	315.00
Net Cash used by Financing activities		(247.50)
Net Increase / (Decrease) in Cash		(279.45)
Cash balance & Equivalent at 31/10/2013		60.75
Cash balance & Equivalent at 31/10/2014		(218.70)

Property, Plant & Equipment Account
Particulars	Amt	Particulars	Amt
To Balance B/f	6,187.50	By Cash	40.50
To Cash (Bal Fig.)	954.00	By Loss on sale of Motor Vehicle	22.50
		By Depreciation	171
		By Balance C/f	6,907.50
	7,141.50		7,141.50
Retained Earnings
Particulars	Amt	Particulars	Amt
To Cash Dividend	472.50	By Balance b/f	3,763.35
To Balance C/f	4,037.85	By Net Income (Bal. fig.)	747.00
	4,510.35		4,510.35