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Cash Flow Statements - QUESTION 1 The Balance Sheets for...

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QUESTION 1 The Balance Sheets for the last two years for Modern Enterprises are shown below. Balance Sheets As at 31 December 2012 2013 $000 $000 $000 $000 $000 $000 Non-Current Assets (see note) 3 200 240 2 960 3 400 260 3 140 Current assets Inventory 320 340 Trade receivables 260 230 Bank 190 210 770 780 Less Current Liabilities Trade payables 200 232 Taxation 70 (270) 500 68 (300) 480 3 460 3 620 Non-current Liabilities 10% debentures 100 120 3 360 3 500 Equity Equity share capital ($1 shares) 2 500 2 700 Share premium account 200 300 General Reserves 150 200 Retained profits 510 3 360 300 3 500 Additional Information: (i) Operating profit for the year amounting to $340 000. (ii) Current year depreciation charge on non-current assets amounting to $140 000. (iii) Some new non-current assets were purchased for $400 000 during the year whereas some assets which had a net book value of $80 000 were sold for $70 000. (iv) A new issue of debentures was made on 31 December 2013. (v) Interest expenses charged to Income Statement amounting to $12 000. (vi) Company paid ordinary share dividends of $420 000 during the year. (vii) 200 000 equity shares of $1 were issued on 1 July 2013 at $1.50 per share. REQUIRED Prepare a Cash Flow Statement in accordance with IAS 7 for the year ended 31 December 2013. QUESTION 2 The statement balance sheets of the last two years for National Limited are as follows Balance Sheets As at 30 June 2012 2013 $000 $000 $000 $000 $000 $000 Non-Current Assets (see note) 4 600 520 4 080 5 200 740 4 460 Current assets Inventory 450 530 Trade receivables 370 350 Bank 190 320 1 010 1 200 Less Current Liabilities Trade payables 170 210 Taxation 70 (240) 770 90 (300) 900 4 850 5 360 Non-current Liabilities 10% loan stock (120) (150) 4 730 5 210 Equity Equity share capital ($1 shares) 3 500 3 750 Share premium account 400 450 General Reserves 300 400 Retained profits 530 4 730 610 5 210 Additional Information: (i) Operating profit for the year amounting to $595 000.
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