80.2K

Verified Solution

Link Copied!

The following data was obtained from the books of Ryan Dean Ltd :

Statement of Financial Position

NON$-$CURRENT ASSETS Land & Building

Fixtures &Fittings

Motor Vehicle

Long Term Investments

CURRENT ASSETS

Inventory

Debtors

Short term Investments B a n k

Cash

CAPITAL AND RESERVES Ordinary Share Capital General Reserves

Retained Earnings

NON$-$CURRENT LIABILITIES

$10\%$ Loan

CURRENT LIABILITIES Creditors

Bank overdraft

Tax Payable Dividends

$2016$

$2017$

COST DEPN NBV

COST

DEPN

NBV $700,000(315,000)$

$385,000$

$700,000$

$(336,000)$

$364,00030\mathrm{.}0(180,000)120,000$

$300,000(210,000)$

$90,000(450,000)300,000$

$150,000$

$270,000$

$30,0001,600,000$

$945,000$

$655,0001,300,000$

$816,000$

$484,000250,000$

$290,000905,000$

$774,000$

$45,000180,000167,000$

$72,000464,0001,369,000$

$38,000225,000$

$258,500152,000$

$89,000$

$580,000150,000$

$480,500$

$73,000$

$762,5001,536,500$

$1,210,500$

$200,000$

Page $5$ of $8$

$500,000120,000215,000$

$55,00036,00027,000160,0$

$835,000$

$400,000$

$134,0001,369,000$

$18,000$

$350,0126,0001,536,500$

$($ Continued$)$

Question One $($Continued$)$

Condensed Statement of Profit and Loss for $2017$

$ Sales

$1,400,000$

Gross Profit

Profit before tax

Tax

Profit after tax Dividends

Transfer to Reserves

Profit for the Year Retained Earnings b$/$d Retained Earnings c$/$d

Notes

$(46500)(30,000)$

$630,000$

$420,000(78,000)342,000$

$(76,500)2180,0480,500$

a$.$ On June $30,2017$ a motor vehicle which was purchased on January $1,2012$ for $$300,000$ and was depreciated at $15\%$ on the straight line basis for $512$ years, was sold for $$30,000$

b$.$ The short term investments are redeemable in three month

Required

$1.$ Prepare the cash flow statement for $2017$

Answer & Explanation Solved by verified expert

See Answer