Scribd Logo
Upload

Welcome to Scribd!

  • 47 views

    E - CAsh Flow Question Meath With Solution and Workings

    Uploaded by

    chalah Deri
    Meath Limited prepared a cash flow statement for the year ended December 31, 2009. It showed net cash from operating activities of €6,850, net cash used in investing activities of €109,500 from the purchase and sale of property, plant and equipment, and net cash from financing activities of €110,000 from the issuance of shares and debentures. The net increase in cash and cash equivalents was €7,350.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    E - CAsh Flow Question Meath With Solution and Workings

    Uploaded by

    chalah Deri
    47 views5 pages
    Meath Limited prepared a cash flow statement for the year ended December 31, 2009. It showed net cash from operating activities of €6,850, net cash used in investing activities of €109,500 from the purchase and sale of property, plant and equipment, and net cash from financing activities of €110,000 from the issuance of shares and debentures. The net increase in cash and cash equivalents was €7,350.

    Original Title

    E_CAsh flow Question Meath with solution and workings

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Meath Limited prepared a cash flow statement for the year ended December 31, 2009. It showed net cash from operating activities of €6,850, net cash used in investing activities of €109,500 from the purchase and sale of property, plant and equipment, and net cash from financing activities of €110,000 from the issuance of shares and debentures. The net increase in cash and cash equivalents was €7,350.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    47 views5 pages

    E - CAsh Flow Question Meath With Solution and Workings

    Uploaded by

    chalah Deri
    Meath Limited prepared a cash flow statement for the year ended December 31, 2009. It showed net cash from operating activities of €6,850, net cash used in investing activities of €109,500 from the purchase and sale of property, plant and equipment, and net cash from financing activities of €110,000 from the issuance of shares and debentures. The net increase in cash and cash equivalents was €7,350.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    IAS 7 Cash Flow Statement Question

    The following are extracts from the financial statements of Meath Limited, for the year ended
    31st December 2009 (with comparative figures for the year ended 31st December 2008) are
    as follows:

    Statement of Financial Position as at 31 December

    2009 2008
    €’000 €’000 €’000 €’000
    Non-current assets
    Land 60,000 40,000
    Plant and Machinery 50,000 30,000
    Fixtures and fittings 120,000 48,500
    230,000 118,500
    Current Assets
    Inventory 73,250 22,750
    Trade receivable 22,900 14,350
    Cash 21,300 15,250
    117,450 52,350
    Total Assets 347,450 170,850

    Equity & Liabilities


    Share Capital and Reserves
    Ordinary Share capital 120,000 85,000
    Share premium 45,000 30,000
    Revaluation Reserve 20,000
    General reserves 22,000 22,000
    Retained profit 11,250 4,800
    218,250 141,800

    Non-Current Liabilities
    7% Debentures 75,000 -

    Current Liabilities
    Trade Payables 41,400 16,700
    Corporation Tax 10,150 8,400
    Bank overdraft 2,650 3,950
    54,200 29,050
    347,450 170,850
    IAS 7 Cash Flow Statement Question

    Extract from Statement of Comprehensive Income


    for year ended 31 December 2009
    €’000
    Operating profit 38,200
    Interest payable (5,250)
    Net profit before tax 32,950
    Taxation (11,500)
    Profit after tax 21,450
    Dividends (15,000)
    Retained profits for year 6,450

    The following additional information is provided in relation to the year ended 31st December
    2009:
     Plant and machinery with a book value of €5,000,000 was sold for €4,000,000.
     New plant was purchased for €32,500,000.
     Fixtures and fittings with a net book value of €8,500,000 were sold for €9,000,000.
     Depreciation provided on fixtures and fittings amounted to €10,000,000.
     The debentures were issued on 1 January 2009.
     Depreciation provided on Plant & Equipment amounted to 7,500,000

    REQUIRED:
    Prepare for Meath Limited, a cash flow statement for the year ended 31st December 2009.

    (Total: 25 Marks)
    IAS 7 Cash Flow Statement Question

    SOLUTION Meath

    Cash flow statement for the year ended 31 December 2009

    Cashflow from operating activity


    Net profit before interest and tax 38,200
    Adjustments
    Depreciation on fixtures 10,000
    Depreciation on plant & equipment 7,500
    Loss on sale of non-current asset 1,000
    Profit on sale of non-current asset (500)
    Operating profit before working capital 56,200
    changes
    Increase in inventories (50,500)
    Increase in trade receivables (8,550)
    Increase in trade payables 24,700
    Cash generated from operations 21,850
    Interest paid (5,250)
    Income tax paid (9,750)
    Net cash from operating activity 6,850

    Cash flow from investing activity


    Payments to acquire tangible non current assets (122,500)
    Receipts from sale of tangible non-current assets 13,000
    Net cash used in investment activity (109,500)

    Cash flow from financing activities


    Issue of shares 50,000
    Debentures issued 75,000
    Dividend paid (15,000)
    Net cash from financing activities 110,000
    Increase in cash in period 7,350

    Opening Cash & Cash Equivalents(15250-3950) 11300


    Closing Cash & Cash Equivalents(21,300-2650) 18650
    Question Meath Workings

    W1 PPE
    Land
    Op Bal 40000
    Closing Bal 60000
    Increase 20000 equal to revaluation
    so no cash Implication

    Plant & Machinery


    Op Bal 30000
    Disposal -5000
    Additions 32,500 CASH Spent
    Depreciation -7500
    Closing 50000

    Disposal
    Cv 5000
    Received 4000 Cash IN
    Loss on Disposal 1000 OP Cash flow

    Fixtures & Fittings


    O Bal 48,500
    Disposal -8500
    Depreciation -10000
    30000
    but Closing Bal 120,000
    Cash Spent 90000 Cash Spent

    Disposal
    Cv 8500
    Received 9000 Cash IN
    Profit on Disposal 500 OP Cash flow

    Total For PPE


    Spent -90000
    -32500
    -122500 Cash flow from investing Activities

    Deprectaion 7500
    10000
    17,500 Cashflow from operations
    W2
    Working capital Changes
    o /bal cl/ bal increase
    Inventory 22750 73250 50500
    receiveables 14350 22900 8550
    Payables 16700 41400 24700

    W3
    Share movement o /bal cl/ bal increase
    Ord share 85000 120000 35000
    SP 30000 45000 15000
    Cash raised by Share issue 50000 Financing Cash inflow

    W4
    Debentures o /bal cl/ bal increase
    0 75000 75000 Financing cash inflow

    W5
    Tax
    O Bal 8400
    P&L Charge 11500
    19900
    closing bal 10150
    Paid 9750

    CASH & CASh Equivalents


    O/Bal Cl Bal
    CASh 15250 21300
    Bank O/Draft -3950 -2650
    11300 18650 7350 Increase in cash & cash Equivalents

    You might also like