Solution-Prepare a statement of cash flows for central ltd

Prepare a statement of cash flows for central ltd

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Reference no: EM131573084

Question - The balance sheets of Central Limited for the years ended 31/12/2006 and 31/12/2007 are presented below:

	31/12/2007 ($000)	31/12/2006 ($000)
Assets
Bank	500	300
Accounts receivable	400	550
Provision for doubtful debts	-200	-150
Property Plant and Equipment	4000	2500
Accumulated Depreciation - Property Plant and equipment	-480	-350
Inventory	360	420
Total Assets	4580	3270

Liabilities
Accounts Payable	800	600
Accrued wages	260	180
Loans	730	460
Total Liabilities	1790	1240
Net assets	2790	2030

Contributed equity	2000	1600
Revaluation reserve	300	250
Retained profits	490	180
Shareholder equity	2790	2030

The Income Statement of Central Limited for the year ended 31/12/2007 is as follows:

	($000)
Sales	3890
Interest received	150
Profit on sale of equipment (Carrying value $420,000)	230
	4270
Expenses
COGS	2200
Doubtful debts	100
Depreciation	350
Interest expense	60
Wages	300
	3010
Net profit for the year	1260

Additional Information:

(i) During the year ended 31 December 2007, Central Limited issued new shares for cash considerations of $400,000

(ii) In June 2007 the company obtained a new term loan amounting to $500,000 from the ASB Bank.

(iii) Dividends were paid in 2007.

Required: Prepare a statement of cash flows for Central Ltd. for the year ended 31/12/2007.

Reference no: EM131573084

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Prepare a statement of cash flows for central ltd

Reference no: EM131573084

Reference no: EM131573084

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