INTRODUCTION TO FINANCIAL ACCOUNTING (ACC2001) TUTORIAL SHEET UNIT 5 - CASH FLOW STATEMENTS Tutorial class 1. The following financial statements were obtained from the books of Theodore for the year ending December 31, 2015 Statements of financial position as at: 2014 2015 Non-Current Assets Cost Depn NBV Cost Depn NBV Goodwill 200,000) 120.000 Building 440,000 120,000 320,000 670,000 145,000 525.000 Equipment 400.000 50,000 350.000 450,00 65.000 385.000 Motor Vehicle 320,000 80.000 240.000 410,000 95.000 315.000 Long Term Investment 65,000 165,000 1,175.000 1.510,000 Current Assets Closing Stock Debtors Short Term Investment Bank Cash Total Assets 40,000 60, 500 20.000 0 18. 500 74,500 55,000 35.000 77.500 24.000 266.000 1,776,000 139,000 1,314,000 Capital & Reserves Share Capital General Reserves Revaluation Reserves Retamed Profit Non-Current Liability 10% Debenture 210,000 75,000 40,000 300,000 335,000 195.000 140,000 556,000 1.226,000 625.000 350,000 400,000 Current Liabilities Creditors Tax Payable Interest Owing Dividends Bank Overdraft Total Equity & Liabilities 40,000 30,000 15,000 19.000 35.000 65,000 35,000 20.000 30,000 0 139,000 1,314,000 150,000 1.776.000 1 Condensed statement of profit or loss for 2015 Net Sales 1,600,500 Cost of Goods Sold Opening Stock add Net Purchases less Closing Stock Gross Profit Net Operating Expenses 40.000 410,000 (74.500) (375.500) 1.225.000 (515,500) PBIT less Interest Profit before Tax less Tax PAT 709,500 (40,000) 669,500 (213,000) 456,500 Add Retained Earning bird 300,000 Total Profit for the Year 756,500 less Transfer to Reserves (120,000) less Dividends (80,500) (200,500) Retained Earnings eld 556,000 Additional notes: 1. During the year equipment costing $80,000 with a book value of $45,000 was sold for $60,000 2. The building was revalued during the year Required: 4. Prepare the cash flow statement for the year 2015. b. Comment on the performance of the firm citing relevant items from the cash flow statement. c. What other information would you find useful in your analysis? 2