EMMA

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X2

$'000
Sales revenue 2,500
Cost of sales -1,900
Gross profit 600
Administrative expenses -339
Depreciation expense -120
Interest income 25
Interest Expense -75
Net profit 91

EMMA
STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER
20X2
$'000
Non-current assets
Tangible assets 380
Intangible assets 200

Current assets
Inventories 231
Interest receivable 5
Receivables 390
Cash in hand 92
Prepayments 10

Total Assets 1308

Equity and liabilities

Share capital ($1 ordinary shares) 550
Retained earnings 191

Total Equity 741

Non-current liabilities
Long-term loan 250

Current liabilities
Trade payables 150
Accruals 147
Taxes payable 10
Interest payable 10

Total Liability 567

0
Additional Info
1. During the year the company has sold non current asset with book value of $25,000 for 30,000
2. The company has paid dividend during the year of $102,000
3. Company puchased Tangible assets during the year for $120,000
4. Intangible asset was sold for its book value. No amortisation has to be charged to intangible assets.
5. Increase in share capital was due to issue of new shares for cash
6. The company obtained an additional long term loan
 SOCF
Operating Activity
Net profit 91
Depreciatio exp 120
Gain on disposal -5
Interest expense 75
Interest income -25
Increase in Inventory -49
Increase in Receivable -75
Decrease in prepayment 22
Increase in trade payables 31
Decrease in accruals -83
Decrease in taxes payable -22

Net cash flow from operating activity 80

20X1 Investing Activity

$'000 Purchase of Intangible assets -120
Sale of intangible asset 50
405 260 Sale of equipment 30
250 -50 Interest received 20

Cash from investing activity -20

182 49
0 5 Financing Activity
315 75 Obtained a new loan 50
99 Additional investing received 50
32 -22 Payment of Dividends -102
Payment of Interest -65
1283
Cash from financing activity -67

500 50
202 Cash at the beginning 99
Net increase/decrease -7
702 Cash at the end 92
0

200 50

119 31
230 -83
32 -22
0 10

581