Caesar Limited The Statement of Comprehensive Income of Caesar Limited for the year to 31st December 2021 is shown below. The company's statement of financial position as of that date (with comparative figures for 2020) is also shown. Caesar Limited Statement of Comprehensive Income for the year to 31st December 2021 2021 £'000 Sales 4,450 Cost of sales (2,738) Gross profit 1,712 Administration and distribution expenses (980) Interest payable (740) Dividend received 649 Profit before tax 641 Taxation (200) Profit after tax 441 Caesar Limited Statements of Financial Position as at 31 December 2021 and 2020 2021 2020 £'000 £'000 ASSETS: Non-current assets Property, plants and equipment 3,450 3,340 Investments 840 840 4,290 4,180 Current assets Inventories 790 588 Trade receivables 423 541 Cash at bank 621 1,834 --- 1,129 6,124 5,309 EQUITY & LIABILITIES Share capital 1,500 1,100 Share premium account 390 280 Retained earnings 2,681 2,350 4,571 3,730 LIABILITIES: Non-current liabilities Long-term loans 751 862 Current liabilities Trade Payables 542 419 Accrued interest payable 60 ---- Taxation 200 178 Bank Overdraft ---- 802 120 717 Total Equity and Liabilities 6,124 5,309 The following information is also available: Administrative and selling expenses include employee salaries of £450,000 and equipment depreciation of £290,000. There were no non-current asset disposals during the year to 31 December 2021. A dividend of £110,000 was paid in December 2021. Required: Prepare the Statement of Cash Flows for Caesar Limited for the year ending on 31 December 2021 in accordance with the requirements of IAS 7 (using the indirect method). According to the requirements of IAS 7, prepare to demonstrate that the direct method would give the same figure for ‘Cash generated from operations as given in (a) above when the indirect method was applied.

Caesar Limited The Statement of Comprehensive Income of Caesar Limited for the year to 31st December 2021 is shown below. The company's statement of financial position as of that date (with comparative figures for 2020) is also shown. Caesar Limited Statement of Comprehensive Income for the year to 31st December 2021 2021 £'000 Sales 4,450 Cost of sales (2,738) Gross profit 1,712 Administration and distribution expenses (980) Interest payable (740) Dividend received 649 Profit before tax 641 Taxation (200) Profit after tax 441 Caesar Limited Statements of Financial Position as at 31 December 2021 and 2020 2021 2020 £'000 £'000 ASSETS: Non-current assets Property, plants and equipment 3,450 3,340 Investments 840 840 4,290 4,180 Current assets Inventories 790 588 Trade receivables 423 541 Cash at bank 621 1,834 --- 1,129 6,124 5,309 EQUITY & LIABILITIES Share capital 1,500 1,100 Share premium account 390 280 Retained earnings 2,681 2,350 4,571 3,730 LIABILITIES: Non-current liabilities Long-term loans 751 862 Current liabilities Trade Payables 542 419 Accrued interest payable 60 ---- Taxation 200 178 Bank Overdraft ---- 802 120 717 Total Equity and Liabilities 6,124 5,309 The following information is also available: Administrative and selling expenses include employee salaries of £450,000 and equipment depreciation of £290,000. There were no non-current asset disposals during the year to 31 December 2021. A dividend of £110,000 was paid in December 2021. Required: Prepare the Statement of Cash Flows for Caesar Limited for the year ending on 31 December 2021 in accordance with the requirements of IAS 7 (using the indirect method). According to the requirements of IAS 7, prepare to demonstrate that the direct method would give the same figure for ‘Cash generated from operations as given in (a) above when the indirect method was applied.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1E

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Caesar Limited

The Statement of Comprehensive Income of Caesar Limited for the year to 31st December 2021 is shown below. The company's statement of financial position as of that date (with comparative figures for 2020) is also shown.

Caesar Limited
Statement of Comprehensive Income for the year to 31st December 2021

	2021
	£'000
Sales	4,450
Cost of sales	(2,738)
Gross profit	1,712
Administration and distribution expenses	(980)
Interest payable	(740)
Dividend received	649
Profit before tax	641
Taxation	(200)
Profit after tax	441

Caesar Limited

Statements of Financial Position as at 31 December 2021 and 2020

		2021		2020
		£'000		£'000
ASSETS:
Non-current assets
Property, plants and equipment		3,450		3,340
Investments		840		840
		4,290		4,180
Current assets
Inventories	790		588
Trade receivables	423		541
Cash at bank	621	1,834	---	1,129
		6,124		5,309

EQUITY & LIABILITIES
Share capital		1,500		1,100
Share premium account		390		280
Retained earnings		2,681		2,350
		4,571		3,730
LIABILITIES:
Non-current liabilities
Long-term loans		751		862
Current liabilities
Trade Payables	542		419
Accrued interest payable	60		----
Taxation	200		178
Bank Overdraft	----	802	120	717
Total Equity and Liabilities		6,124		5,309

The following information is also available:

Administrative and selling expenses include employee salaries of £450,000 and

equipment depreciation of £290,000.
There were no non-current asset disposals during the year to 31 December

2021.
A dividend of £110,000 was paid in December 2021.

Required:

Prepare the Statement of Cash Flows for Caesar Limited for the year ending on 31 December 2021 in accordance with the requirements of IAS 7 (using the indirect method).
According to the requirements of IAS 7, prepare to demonstrate that the direct method would give the same figure for ‘Cash generated from operations as given in (a) above when the indirect method was applied.

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