SOCF I SMNR Q

Q1

Zoe plc had the following movements in property plant and equipment during the year
ended 28 February 2006:

£000
Opening NBV 1 March 2005 90,000
Additions 21,000
Depreciation for the year (10,000)
NBV of disposals (1,000)
Closing NBV 28 February 2006 100,000

Zoe plc made a profit of £200,000 on disposals.

Required

Show the information relating to property plant and equipment which will appear on
Zoe’s cash flow statement under the following headings:

i) The cash flow from operating activities

ii) The cash flow from investing activities

Q2 Eric Ltd included the following in its financial statements for the year ended 31
March 2006

2006 2005
£000 £000
Long-term liabilities
Bank loan 50 80

Shareholders’ funds
Ordinary shares 150 100
Share premium 48 40
Retained profits 17 20

Eric Ltd paid a dividend of £10,000 for the year.

Required

Show the cash flow from financing activities for Eric Ltd for the year ended 31
March 2006.
Q3

Punch PLC Cash flow statement

Requirement

Prepare the cash flow statement for the year ended 31 December 20x2. The balance
sheets for 31 December 20x1 and 20x2 are included below. The results of trading for
the year ended 31 December 20x2 are included in the profit and loss included below.
£ £ 20x2 £ 20x1 £
Fixed Assets Cost Acc NBV NBV
Depn
Land & Buildings 200000 200000 200000
Plant &Machinery 100000 20000 80000 90000
Furniture and Fittings 400000 230000 170000 200000
700000 250000 450000 490000

Investments 154000 150000

Current Assets
Stock and Work in Progress 600000 400000
Debtors & Prepayments 457000 400000
Cash at bank and in Hand 34000 24000
1091000 824000
Creditors: Amounts falling due within one year
Trade Creditors 230000 225000
Accruals 2000
Provision for bad debt 4000
Provision for taxation 237000 124000
Provision for dividends 53000 130000
Working capital / net current assets (526000) 565000 345000
1169000 985000
Creditors: Amounts falling due after more than
one year
10% debenture (100000) (100000)
£106900 £885000
0

Represented by:

Share Capital 500000 500000

Preference Share Capital 60000 60000
Share Premium Account 140000 140000
Other Reserves 15000 5000
Profit and Loss Account/Reserves 354000 180000
Shareholders’ Funds £106900 £885000
0
Profit and loss account £ £
Sales 2600000
Opening Stock 400000
Add: Purchases 1006000
1406000
Less: Closing Stock (600000)
Cost of sales (806000)
Gross profit 1794000
Dividends received 17000
1811000
Expenses
Admin expenses 393000
Distribution costs 882000
Depreciation 40000
Bad debt written off 8000
Bad debt provision 4000 (1327000)
Operating profit 484000
Net interest (10000)
Profit on ordinary activities before taxation 474000
Taxation (237000)
Net profit 237000
Preference dividend (3000)
Ordinary dividend (50000)
Transfer to general reserve (10000)
Profit for the financial year ended 31 Dec 20x2 174000
Profit and loss account b/f at 1 Jan 20x2 180000

Profit and loss account c/f at 31 Dec 20x2 354000

Q2