The Following are extracts from the financial statements of Wewe Ltd. As at 31st March:...

60.1K

Verified Solution

Question

Accounting

The Following are extracts from the financial statements of Wewe Ltd. As at 31st March:

2018

2017

Shs 000

Shs 000

Shs 000

Shs 000

Fixed assets:

2,800

2,900

Goodwill

16,800

12,000

Freehold Land & building

5,860

6,350

Plant & Machinery (NBV)

3,600

3,750

Investment at cost

29,060

25,000

Current Assets:

10,050

8,700

Stock

6,140

7,800

Accounts receivable

1,710

840

Investment

200

430

Cash at hand & bank

18,100

17,770

Current Liabilities:

(2,390)

(6,540)

Bank overdraft

(5,850)

(5,250)

Account Payable

(450)

(380)

Proposed dividends

(820)

(600)

Taxation

(9,510)

(12,770)

8,590

5,000

Net current assets

37,650

3,000

15% Debentures

(7,500)

(9,000)

30,150

21,00

Capital and Reserves:

Authorized, issued & paid Sh. 10

18,000

15,000

Ordinary shares

1,500

750

Share premium

4,500

-

Revaluation reserve

6,150

5,250

Retained Profit

30,150

21,000

The profit and loss appropriation account for the year ended 31 March 2018 is given below:

Shs. 000

Shs. 000

Net profit before tax

2,400

Less: Corporation tax

900

Profit after tax

1,500

Dividends:

Interim (Paid)

150

Proposed (Paid)

450

600

900

The following additional information is provided:

  1. Profit for the year is arrived at after charging:

Shs. 000

Depreciation on plant & machinery

1,150

Goodwill amortization

420

  1. During the year, plant with a net book value of Sh. 750,000 was sold for Sh, 1,470,000. The plant had originally cost Sh. 3,000.000.
  2. The investments portfolio was reduced by selling one block of shares at a profit of Sh. 160,000.

Required:

Cash flow statement in accordance with IAS 7.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students