Statement of cash flow, information attached. The Statement of financial position of Calvert Ltd at 31ı December 2019 is as followsStatement of financial position at 31 December20192018£000£000Non current assetsInvestment at cost50100Plant and equipment – costLess: accumulated depreciation2,4701,7908506301,6201,6701,1601,260Current assetsInventoryReceivables7405101,010640Bank3301,7503,4201,4802,740Total assetsEquityEquity £1 sharesShare premiumRevaluation reserveRetained earnings5004001401003003007308001,6701,600Current liabilitiesTrade payablesCorporation taxBank overdraft660530110190850640Non current liabilitiesLong term loan900500Total liabilities1,7501,140Total equity and liabilities3,4202,740The following information is available:i. Loss before taxation: £50,000.ii. Plant and equipment with an original cost of £120,000 and accumulateddepreciation of £80,000 was sold in February 2019 for £30,000.iii. Interest paid in the year totalled £70,000.iv. No dividends were paid.v. There is no tax liability for the year to 31 December 2019. The tax liability forthe year to 31 December 2018 was underestimated by £20,000.Required:(a) Prepare a statement of cash flow for Calvert Ltd for the year to 31 December2019.

The statement prepared to find net cash inflow or outflow from the business during the period.

The Statement of financial position of Calvert Ltd at 31 December 2019 is as follow Statement of financial position at 31 December 2019 2018 £000 £000 Non current assets 50 1,790 Investment at cost 100 Plant and equipment – cost Less: accumulated depreciation 2,470 850 1,620 1,670 630 1,160 1,260 Current assets Inventory 740 510 Receivables 1,010 640 Bank 330 1,750 3,420 1,480 2,740 Total assets Equity Equity £1 shares Share premium Revaluation reserve Retained earnings 500 400 140 100 300 300 730 800 1,670 1,600 Current liabilities Trade payables Corporation tax 660 530 110 Bank overdraft 190 850 640 Non current liabilities Long term loan 900 500 Total liabilities 1,750 3,420 1,140 Total equity and liabilities 2,740 The following information is available: i. Loss before taxation: £50,000. ii. Plant and equipment with an original cost of £120,000 and accumulated depreciation of £80,000 was sold in February 2019 for £30,000. iii. Interest paid in the year totalled £70,000. iv. No dividends were paid. v. There is no tax liability for the year to 31 December 2019. The tax liability fo the year to 31 December 2018 was underestimated by £20,000. Required: (a) Prepare a statement of cash flow for Calvert Ltd for the year to 31 December

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE