Prepare a statement of cash flows for the year ended 31 December 2019.
Question # 6
Waqar is a sole trader. He provides the following financial information in respect of his business.
Income statement for the year ended 31 December 2019
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Sales |
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3380000 |
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Cost of sales |
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(2000000) |
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Expenses |
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(1200000) |
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Profit for the year |
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180000 |
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31 December 2018 |
31 December 2019 |
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Non-current assets |
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Freehold land |
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2000000 |
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3500000 |
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Plant and machinery at cost |
900000 |
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1020000 |
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Less: depreciation |
(500000) |
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(470000) |
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Net book value |
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400000 |
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550000 |
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2400000 |
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4050000 |
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Current assets |
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Inventory |
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310000 |
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320000 |
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Trade receivables |
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240000 |
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210000 |
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Cash and cash equivalents |
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10000 |
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- |
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560000 |
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530000 |
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Current liabilities |
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Trade payables |
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200000 |
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160000 |
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Bank overdraft |
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- |
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530000 |
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200000 |
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690000 |
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Non-current liability – loan |
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500000 |
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350000 |
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Net assets |
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2260000 |
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3540000 |
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Additional information |
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Additional Information:
- Drawing is $400
- During the year Winston purchased new plant at a cost of $200 000. He also sold some plant that had a net book value of $20 000 and had been
depreciated by $60 000. This resulted in a loss on disposal of $2000.
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REQUIRED |
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Prepare a statement of cash flows for the year ended 31 December 2019. |
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