The following are the statements of comprehensive income and financial positions of
Green Limited:
Green Limited
Statement of Comprehensive Income for the Year Ended 31st December 2018
GH₵
GH₵
Sales
86,000
Less: Cost of goods sold
Opening stock
16,500
Purchases
48,000
64,500
Less closing stock
(24,000)
(40,500)
Gross profit
45,500
Less operating expenses
Administrative expenses
(9,000)
Depreciation
(4,000)
Selling & distribution expenses
(10,000)
(23,000)
Profit before interest and tax
22,500
Interest
(5,000)
Profit before tax
17,500
Corporate tax
6,000
Profit after interest & tax
11,500
Green Limited
Statement of Financial Position as at 31st December 2018
31/1/2018
31/12/017
Non-current assets
Plant & machinery
20,000
15,000
Motor vehicles
8,000
8,000
Equipment
10,000
12,000
38,000
35,000
Current assets
Inventory
24,000
16,500
Receivables
20,000
23,000
Cash & bank
48,000
92,000
34,000
73,500
Total assets
130,000
108,500
Financed by:
Stated capital
55,000
40,000
Income surplus
2,000
57,000
5,000
45,000
Non-current liabilities
5% Debenture
46,000
35,200
Current liabilities
Creditors
27,000
28,300
Total equity and liabilities
130,000
108,500
Required:
(a) Prepare the Statement of Cash-flow for Simons Limited for the year ended 31st
December, 2018.