Solution-Prepare a statement of cash flows for central ltd

Prepare a statement of cash flows for central ltd

Reference no: EM131589072

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: EM131589072

Questions Cloud

Voting paradox problem that can arise : a) Discuss the relationship of Public Choice and Voting and explain the Voting Paradox problem that can arise.

What is the project npv : Question - The ABD Company is considering buying a new machine for one of its factories, what is the project's NPV

Improve a current account deficit : 1. Expenditure-switching policies designed to improve a current account deficit

Review the case related to the watergate scandal : In this exercise you are to write a short paper (1-2 pages) analyzing the following National Geographic Channel expose on the Watergate scandal.

Prepare a statement of cash flows for central ltd : The balance sheets of Central Limited for the years ended 31/12/2006 and 31/12/2007 are presented, Prepare a statement of cash flows for Central Ltd.

Write a loop that for each employee : Define an arrayList, myEmployees, of Employee type - Within the try-catch block - Write a loop that, for each employee

Concept and components of business cycles : In an essay, explain the concept and components of business cycles, and identify some of the factors that contribute to the expansion and contraction.

What would you want your friend who found out out to do : If you were the person cheating on his or her spouse, what would you want your friend who found out to do to you, and why?

What percentage of schools require work experience : What percentage of schools require work experience? From this percentage, does this appear to be a significant factor in gaining admissions?

User Account

All Pages

Prepare a statement of cash flows for central ltd

Reference no: EM131589072

Reference no: EM131589072

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT