Attempt Question 1 (Croatia Ltd and bring with you to the seminar)
Q1.
You have been asked to prepare the statement of cash flows for Croatia Ltd for the year ended 31
May 20X1.
The most recent statement of comprehensive income and statement of financial position (with
comparatives for the previous year) of Croatia Ltd are set out below.
Croatia Ltd - Statement of profit or loss for the year ended 31 May 20X1
£000
Revenue
113,465
Cost of sales
(57,532)
Gross profit
Loss on disposal of property, plant and equipment
Dividends received
55,933
(96)
161
55,998
Distribution costs
(31,230)
Administrative expenses
(17,345)
Profit from operations
Finance costs
Profit before tax
Tax
Profit for the period
7,423
(986)
6,437
(1,214)
5,223
Croatia Ltd – Statement of financial position as at 31 May 20X1
20X1
20X0
£000
£000
ASSETS
Non-current assets
Property, plant and
equipment
38,678
21,321
Investments at cost
5,400
5,400
44,078
26,721
Current assets
Inventories
8,321
6,542
Trade and other receivables
6,108
5,978
Cash and cash equivalents
1,321
14,429
13,841
Total assets
58,507
40,562
EQUITY AND LIABILITIES
Equity
Share capital
Share premium
Retained earnings
Total equity
Non-current liabilities
Bank loans
Current liabilities
Trade payables
Tax liabilities
Bank overdraft
Total liabilities
Total equity and liabilities
22,000
7,300
16,981
46,281
15,000
2,330
12,474
29,804
6,650
6,650
4,500
4,500
3,987
1,214
375
5,576
12,226
58,507
4,150
2,108
6,258
10,758
40,562
Further information:
•
The total depreciation charge for the year was £2,604,000.
•
Property, plant and equipment with a carrying amount of £563,000 was sold in the year.
•
All sales and purchases were on credit. Other expenses were paid for in cash.
•
Dividends of £716,000 were paid in the year.
REQUIRED
Prepare the statement of cash flows for Croatia Ltd for the year ended 31 May 20X1.
2
Q2.
You have been asked to prepare the statement of cash flows for Ottawa Ltd for the year ended 30 June 20X1.
The most recent statement of comprehensive income and statement of financial position (with comparatives for
the previous year) of Ottawa Ltd are set out below.
Ottawa Ltd - Statement of profit or loss for the year ended 30 June 20X1
£000
Revenue
75,489
Cost of sales
(41,625)
Gross profit
33,864
Loss on disposal of property, plant and equipment
(175)
33,689
Distribution costs
(11,348)
Administrative expenses
(14,251)
Profit from operations
8,090
Finance costs
(580)
Profit before tax
7,510
Tax
(1,741)
Profit for the period
5,769
3
Ottawa Ltd – Statement of financial position as at 30 June 20X1
20X1
20X0
£000
£000
ASSETS
Non-current assets
Property, plant and equipment
23,457
20,356
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
6,245
5,307
124
7,145
4,128
-
11,676
11,273
35,133
31,629
6,450
5,020
8,548
5,200
3,240
5,879
20,018
14,319
9,800
12,000
9,800
12,000
180
3,394
1,741
-
120
3,146
1,130
914
5,315
5,310
Total liabilities
15,115
17,310
Total equity and liabilities
35,133
31,629
Total assets
EQUITY AND LIABILITIES
Equity
Ordinary share capital
Share premium
Retained earnings
Total equity
Non-current liabilities
Bank loans
Current liabilities
Accrued interest
Trade payables
Tax liabilities
Bank overdraft
Further information:
•
•
•
•
The total depreciation charge for the year was £2,964,000.
Property, plant and equipment with a carrying amount of £817,000 was sold in the year.
All sales and purchases were on credit. Other expenses were paid for in cash.
The 20X0 dividend of £3,100,000 was paid in August 20X0, and the 20X1 dividend of £1,800,000 was
declared on 27 July 20X1 before the financial statements were authorised for issue.
Prepare the statement of cash flows for Ottawa Ltd for the year ended 30 June 20X1 using the indirect
method.
4