70.2K

Verified Solution

Link Copied!

Question 1 The 2020/21 income statement and the statements of financial position for Quantum plc are listed below: Income statement for the period ending 30 September 2021 Revenue Cost of sales Gross Profit Distribution costs Administration costs Gain on disposal of property Impairment of plant and equipment Finance costs Profit before tax Taxation Profit for the year 000 25,281 (20,400) 4,881 (1,650) (2,700) 150 (117) (180) 384 (90) 294 Statement of financial position as at 30 September 2021 2020 000 2021 000 Assets Non-current assets Property, plant and equipment 3,360 4,500 Current assets Inventory Accounts receivable Cash 3,390 2,400 1,680 1,950 201 3,831 5,790 Total assets 7,191 10,290 Equity Ordinary Shares (1 shares) Retained earnings 1,500 651 2,151 1,800 564 2,364 Liabilities Non-current liabilities Loan 2,928 3,600 Current liabilities 4 CONTINUED OVERLEAF Accounts payable Tax payable Interest payable Bank overdraft 1,950 90 72 2,550 180 105 1.491 4,326 2,112 Total equity and liabilities 7,191 10,290 Additional information: Total depreciation expense for the year ended 30 Sep 2021 was 570,000. The gain on sale related to the sale of property which cost 474,600 with accumulated depreciation of 429,600. Required: Prepare the statement of cash flows for Quantum plc for the year ended 30 September 2021. (Notes to the statement of cash flows are not required.) Write an evaluation of the operating, financing, and investing activities of Quantum plc (500 words maximum)

Answer & Explanation Solved by verified expert

See Answer