Show your workings for the question below; The summarised financial statements of LL Limited are as follows:” Profit & Loss Account/Income Statement for the year ended 31 December 2020 £000 Operating profit 80 Investment income 5 Interest payable (7) Profit before taxation 78 Taxation (14) Profit after taxation 64 Dividends payable (20) Retained profit 44 Balance Sheets 2020 2020 2019 2019 £000 £000 £000 £000 Fixed/Non-current assets Cost 370 290 Depreciation (70) (50) 300 240 Current assets Stock/inventory 95 70 Trade debtors/receivables 75 56 Short-term deposits 35 26 Bank 44 249 152 Current liabilities Trade creditors/payables 40 45 Interest payable 18 23 Taxation payable 10 12 Dividends payable 15 22 Bank 13 (83) (115) Non-current liabilities Loans (150) (60) NET ASSETS 316 217 Shareholders’ Funds Share capital 180 135 Share premium account 60 50 Retained profits 76 32 316 217 “Additional information A fixed/non-current asset which originally cost £20,000 and had accumulated depreciation as at the date of sale of £15,000 was sold for a profit of £1,000.” “Required” 1. “Prepare LL’s cash flow statement using the indirect method for the year ending 31st December 2020, showing clearly how cash and cash equivalents changed during the year.”
Show your workings for the question below;
The summarised financial statements of LL Limited are as follows:”
|
Profit & Loss Account/Income Statement for the year ended 31 December 2020 |
£000 |
|
Operating profit |
80 |
|
Investment income |
5 |
|
Interest payable |
(7) |
|
Profit before |
78 |
|
Taxation |
(14) |
|
Profit after taxation |
64 |
|
Dividends payable |
(20) |
|
Retained profit |
44 |
|
Balance Sheets |
2020 |
2020 |
2019 |
2019 |
|
|
£000 |
£000 |
£000 |
£000 |
|
Fixed/Non-current assets |
||||
|
Cost |
370 |
290 |
||
|
|
(70) |
(50) |
||
|
|
300 |
240 |
||
|
Current assets |
||||
|
Stock/inventory |
95 |
70 |
||
|
Trade debtors/receivables |
75 |
56 |
||
|
Short-term deposits |
35 |
26 |
||
|
Bank |
44 |
|||
|
|
249 |
152 |
||
|
Current liabilities |
||||
|
Trade creditors/payables |
40 |
45 |
||
|
Interest payable |
18 |
23 |
||
|
Taxation payable |
10 |
12 |
||
|
Dividends payable |
15 |
22 |
||
|
Bank |
13 |
|||
|
|
(83) |
(115) |
||
|
Non-current liabilities |
||||
|
Loans |
(150) |
(60) |
||
|
NET ASSETS |
316 |
217 |
||
|
Shareholders’ Funds |
||||
|
Share capital |
180 |
135 |
||
|
Share premium account |
60 |
50 |
||
|
Retained profits |
76 |
32 |
||
|
|
316 |
217 |
“Additional information
A fixed/non-current asset which originally cost £20,000 and had
“Required”
1. “Prepare LL’s cash flow statement using the indirect method for the year ending 31st December 2020, showing clearly how cash and cash equivalents changed during the year.”
2. ‘Describe the concept of “over-trading” using numeric example if appropriate.’
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