QUESTION 1 - PILOT PLC The following is Income Statement of Pilot Ltd for the year ended 31 Dec 2018: 2018 £'000 Revenue 4,520 (3,420) 1,100 (745) |(21) 334 (150) 184 Cost of sales Gross profit Expenses Interest expense Profit before tax Corporation tax Profit after tax The following is the Statement of Financial Position of Pilot Ltd as at 31 Dec 2017 and 2018: 2017 2018 ASSETS £'000 £'000 Non- current Assets 700 560 Land at cost 780 Plant & Equipment at cost Less: Accum.Depreciation Net Book Value Current Assets 660 (230) (296) 1,030 1,144 Inventories Trade Receivables 356 330 30 1,746 498 304 Cash Total Assets 1.946 EQUITIES AND LIABILITIES Share Capital - £1 shares Share Premium Retained Earnings 550 400 160 210 376 490 Current Liabilities Trade Payables Corporation Tax Bank Overdraft 240 230 120 90 126 Non- current Liabilities Debentures - 6% Total Equity and Liabilities 450 1,746 250 1,946 You are informed that: - Plant which originally cost £80,000 was sold for cash of £14,000. The profit/loss on disposal is included in expenses. Accumulated depreciation relating to the plant sold amounted to £58,000. - The debentures were repaid on 30 June 2017. Interest of £21,000 for the year was fully paid by 31 Dec 2018. - Dividend payment for the year was £70,000. Required Prepare Cashflow Statement. Show your workings fully.
QUESTION 1 - PILOT PLC The following is Income Statement of Pilot Ltd for the year ended 31 Dec 2018: 2018 £'000 Revenue 4,520 (3,420) 1,100 (745) |(21) 334 (150) 184 Cost of sales Gross profit Expenses Interest expense Profit before tax Corporation tax Profit after tax The following is the Statement of Financial Position of Pilot Ltd as at 31 Dec 2017 and 2018: 2017 2018 ASSETS £'000 £'000 Non- current Assets 700 560 Land at cost 780 Plant & Equipment at cost Less: Accum.Depreciation Net Book Value Current Assets 660 (230) (296) 1,030 1,144 Inventories Trade Receivables 356 330 30 1,746 498 304 Cash Total Assets 1.946 EQUITIES AND LIABILITIES Share Capital - £1 shares Share Premium Retained Earnings 550 400 160 210 376 490 Current Liabilities Trade Payables Corporation Tax Bank Overdraft 240 230 120 90 126 Non- current Liabilities Debentures - 6% Total Equity and Liabilities 450 1,746 250 1,946 You are informed that: - Plant which originally cost £80,000 was sold for cash of £14,000. The profit/loss on disposal is included in expenses. Accumulated depreciation relating to the plant sold amounted to £58,000. - The debentures were repaid on 30 June 2017. Interest of £21,000 for the year was fully paid by 31 Dec 2018. - Dividend payment for the year was £70,000. Required Prepare Cashflow Statement. Show your workings fully.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 86PSB
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Transcribed Image Text:QUESTION 1 - PILOT PLC
The following is Income Statement of Pilot Ltd for the year ended 31 Dec 2018:
2018
£'000
Revenue
Cost of sales
Gross profit
Expenses
Interest expense
4,520
(3.420)
1,100
(745)
(21)
Profit before tax
Corporation tax
Profit after tax
334
(150)
184
The following is the Statement of Financial Position of Pilot Ltd as at 31 Dec 2017
and 2018:
2017
2018
ASSETS
£'000
£'000
Non- current Assets
Land at cost
700
560
780
660
Plant & Equipment at cost
Less: Accum.Depreciation
(230)
(296)
Net Book Value
Current Assets
Inventories
Trade Receivables
1,030
1,144
356
498
304
330
Cash
30
1,746
Total Assets
1,946
EQUITIES AND LIABILITIES
400
Share Capital - £1 shares
Share Premium
Retained Earnings
160
376
550
210
490
Current Liabilities
240
120
Trade Payables
230
Corporation Tax
90
Bank Overdraft
126
Non- current Liabilities
Debentures - 6%
Total Equity and Liabilities
250
450
1,746
1,946
You are informed that:
- Plant which originally cost £80,000 was sold for cash of £14,000. The profit/loss on
disposal is included in expenses. Accumulated depreciation relating to the plant sold
amounted to £58,000.
- The debentures were repaid on 30 June 2017. Interest of £21,000 for the year was
fully paid by 31 Dec 2018.
- Dividend payment for the year was £70,000.
Required
Prepare Cashflow Statement. Show your workings fully.
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