Question 5 Toney Ltd Balance Sheets as at December 31, 2016 and December 31, 2015 along with the Profit and Loss Account for the year ended December 31, 2016 are as follows: December 31, 2016 December 31, 2015 Details/Accounts $000 $000 $000 $000 $000 $000 Fixed Assets: Costs Acc.dep. NBV Costs Acc.dep. NBV Property at valuation 1,500 ------- 1,500.0 1,275.0 ------- 1,275.0 Plant & machinery 1,170 480.0 690.0 1,042.5 420 622.5 Motor vehicles 600 277.5 322.5 498.0 255 243.0 Office furniture, etc. 90 45.0 45.0 82.5 42 40.5 3,360 802.5 2,557.5 2,898.0 717 2,181.0 Current Assets: Stock 375 333 Debtors 153 160.5 Short term investments 450 ---- Cash at bank 81 112.5 1,059 606 Creditors: amounts falling due within 1 yr. Trade creditors (67.50) (102) Taxation (210) (129) Proposed dividends (180) (457.50) (150) (381) Net current assets 601.50 225 Total assets less current liabilities 3,159 2,406 Creditors: amts. fall.due after more than 1 yr. 10% Debenture stock (150) (225) 3,009 2,181 Capital and Reserves: Issued share capital 1,500 900 Share premium 45 315 Property revaluation reserve 225 ----- Asset replacement reserve 375 300 General reserve 600 ------ 450 ------- Retained profit c/f 264 3,009 216 2,181 Profit and loss account (extract) for the year to December 31, 2012: Details/Accounts $000 $,000 Profit before tax 741 Taxation (198) Profit after tax 543 Transfer to asset replacement reserve (75) Transfer to general reserves (150) Dividends paid and proposed (270) (495) Retained profit for the year 48 Retained profit b/f 216 Retained profit c/f 264 Additional Information: (i) For the year to December 31, 2016 the following transactions took place: -Office furniture etc. which had costs $15,000 and which hade depreciated by $7,500 was sold at loss of $3,000. -Plant and machinery which costs $180,000 and which had depreciated by $142,500, was sold for $33,000. -Motor vehicles costing $127,500 and which had a written down value of $22,500 at the date of sale were sold for $42,000. (ii) The 10% debenture stock is redeemable at par. The redemption of debenture stock took place on January 1, 2016. (iii) There was no addition to property during the year to December 31, 2016. (iv) The short-term investments are redeemable immediately. (i) During the year to December 31, 2016 a bonus issue of shares was made on the basis of one bonus share for every three shares held. This was done by using part of the share premium account. The company then made a rights issue on the basis of one share for each four held, the new shares being offered at a premium of 10 cents on each share. Required: (a) Prepare summaries or calculations to show the amounts that will be included in Toney Ltd Cash Flow Statement on December 31, 2016 for the following items: (i) Net profit before interest and tax (2 marks) (ii) Purchases of tangible fixed assets (write up relevant accounts). (12 marks) (iii) Dividends paid (2 marks) (iv) Corporation tax paid (2 marks) (b) Prepare a summary to determine the figure that would be presented in the cash flow statement as net cash inflow from operating activities. (7 marks)