Income Statements for the year ended December
The following further information is available:
The government bonds are highly liquid and management has decided to classify them as cash
equivalents.
An asset was disposed of for sale proceeds of $ with the gainloss on disposal included
as part of expenses in the income statement. The cost of asset sold was $ and its net book
value was $
The investments are shares held in another company. An impairment loss of $ was written
off and included in administrative expenses. There was also purchase of additional shares during
the year.
A bonus issue of ordinary $ shares was made on January The bonus issue was
made partly by utilising all of the share premium and the balance by capitalising retained earnings.
There was a further issue of shares at a premium for cash consideration made on June
An interim dividend was paid in June
Required:
a Prepare a cash flow statement for Wesley Ltd for the year ended December
marks
b Evaluate Wesley Ltds cash flow position.
Your answers should ONLY be about page page.
