Chapter 24 Cash flow statements

Q1 Pie Ltd

Balance Sheet as at 30 April 2002

$000 $000 $000
Cost Depn NBV
Fixed Assets
Intangible: Goodwill (+ 30 w/o) 30
Tangible: Freehold premises1 400 160 240
Plant and machinery2 360 200 160
Motor vehicles3 108 60 48
868 420 448

478
Current assets
Stock (212 40) 172
Debtors (96 28) 68
Bank (138 36) 102
342
Creditors: amounts falling due within one year
Trade creditors (63 + 44) 107
Preference dividend 3
Ordinary dividend (25 10) 15 125 217
695
Creditors: amounts falling due after more than one year
10% debentures 2002/5 (80 + 40) 120
575
Share capital and reserves
Ordinary shares of $1 (300 50) 250
6% Preference shares of $1 100
Share Premium account (105 50 +15) 70
(Revaluation reserve) (360 200 160) -
General reserve (100 20) 80
Retained profit (134 59) 75
575

$000
Freehold premises at cost (given) 400
Depreciation 1993/4 2002/3 (10 yrs)
Annual depreciation 400 0.04 = 16
Depreciation at 30/4/03 = 10 16 160
Plant and machinery at cost (520 + 90 250) 360
Depreciation (280 150 + 70* ) 200
[ * Cost 90 + profit 15 proceeds 35 = 70]
Motor vehicles at cost (135 + 35 62) 108
Depreciation (85 50 + 25*) 60
[* Cost 35 loss 4 proceeds 6 = 25]
Q2 Budgeted Balance Sheet of Prophile plc at 31 October 2003
At cost At valuation Depn NBV Notes
$000 $000 $000 $000
Tangible fixed assets
Freehold premises 1000 1000 1
Plant and machinery 1380 580 800 2
1800
Current assets
Stock 115 3
Debtors 97 4
Cash at bank 123 5
335
Creditors: amounts due within one year
Trade creditors 47 6
Dividends 50 97 238 7
2038
Creditors: amounts due after more than one year
10% debenture stock 2002/2005 200 8
1838

Share capital and reserves

Ordinary shares of $1 1000 9
Share premium account 200 10
Revaluation Reserve 240 11
General Reserve 160 12
Profit and Loss Account 238 13
1838

Notes
1 Freehold premises Cost Depreciation NBV
$000 $000 $000
At 31.10.02 850 (90) 760
Revaluation 150 90 240
At 31.10.03 1000 - 1000

2 Plant and machinery Cost Depreciation NBV

$000 $000 $000
At 31.10.02 1197 (469) 728
Additions 293 293
Depreciation (200) (200)
Disposals (110) (89) ( 21)
At 31.10. 03 1380 580 (800)

The following in $000:

3 Stock $(191 76) = $115
4 Debtors $(82 + 15) = $97
5 Cash at bank $(25 + 98) = $123
6 Creditors $(73 26) = $47
7 Dividends: ordinary $(40 + 30 70 + 50(proposed)) = $50
8 Debentures $(300 100) = $200
9 Ordinary shares $(850 + 150) = $1000
10 Share Premium account at 31.10.02 $150
Premium on share issue $60
Premium on redemption of preference shares (part) (10)
At 31.10.03 $200
11 Revaluation Reserve $240 (see note 1 above)
12 General reserve $(100 +60) = $160
13 Profit and Loss Account $000
At 31.10.02 173
Less surplus of premium on redemption
of preference shares not charged to
Share Premium account (10)
Retained profit for the year 75
At 31.10.03 238