QUESTION 1 Below are extracts from the financial statements of Mars Ltd. Statement of Profit / Loss and other comprehensive income for the year ended 31 March 2018 N$ 000 Sales 30 650 Cost of sales (26 000) Gross Profit 4 650 Distribution costs (900) Administration costs (500) Profit from operations 3 250 Investment income 680 Finance costs (400) Profit before tax 3 530 Income tax expense (300) Profit for the period 3 230 Statement of financial position as at 31 March 2018 2018 N$ 000 2017 N$ 000 Non-current assets 4 780 3 350 PPE 2 280 850 Investments 2 500 2 500 Current assets 3 310 3 310 Inventories 1 000 1 950 Trade and other receivables 1 900 1 200 Cash and cash equivalents 410 160 Total assets 8 090 6 650 Equity and liabilities Total equity 4 910 2 660 Share capital 1 000 900 Share premium 500 350 Retained earnings 3 410 1 410 Liabilities Current liabilities 880 2 990 Trade and other payables 250 1 890 Interest payables 230 100 Taxation 400 1 000 Long term liabilities 2 300 1 010 Long term borrowings 2 300 1 010 Total equity and liabilities 8090 6 650 Additional information: Profit from operations is after charging depreciation on Property plant and equipment of N$450 000 During the year ended 31 March 2018 Plant and machinery costing N$80 000 and with accumulated depreciation of N$60 000 was sold for N$20 000. During the year ended 31 March 2018 the company acquired Property plant and equipment costing N$1 900 000 of which N$900 000 was acquired by means of finance leases. Cash payments of N$1 000 000 were made to purchase PPE N$90 000 was paid under finance leases The receivables at the end of 2018 includes N$100 000 of interest receivables. There was no balance at the beginning of the year. Investment income of N$680 000 is made up of N$300 000 interest receivable and N$380 000 dividends received. Dividends paid during the year were N$1 200 000. Required: A. Prepare a Statement of cash flows for Mars Ltd for the year ended 31 March 2018 in accordance with IAS 7 Statement of cash flows using the indirect method.

QUESTION 1 Below are extracts from the financial statements of Mars Ltd. Statement of Profit / Loss and other comprehensive income for the year ended 31 March 2018 N$ 000 Sales 30 650 Cost of sales (26 000) Gross Profit 4 650 Distribution costs (900) Administration costs (500) Profit from operations 3 250 Investment income 680 Finance costs (400) Profit before tax 3 530 Income tax expense (300) Profit for the period 3 230 Statement of financial position as at 31 March 2018 2018 N$ 000 2017 N$ 000 Non-current assets 4 780 3 350 PPE 2 280 850 Investments 2 500 2 500 Current assets 3 310 3 310 Inventories 1 000 1 950 Trade and other receivables 1 900 1 200 Cash and cash equivalents 410 160 Total assets 8 090 6 650 Equity and liabilities Total equity 4 910 2 660 Share capital 1 000 900 Share premium 500 350 Retained earnings 3 410 1 410 Liabilities Current liabilities 880 2 990 Trade and other payables 250 1 890 Interest payables 230 100 Taxation 400 1 000 Long term liabilities 2 300 1 010 Long term borrowings 2 300 1 010 Total equity and liabilities 8090 6 650 Additional information: Profit from operations is after charging depreciation on Property plant and equipment of N$450 000 During the year ended 31 March 2018 Plant and machinery costing N$80 000 and with accumulated depreciation of N$60 000 was sold for N$20 000. During the year ended 31 March 2018 the company acquired Property plant and equipment costing N$1 900 000 of which N$900 000 was acquired by means of finance leases. Cash payments of N$1 000 000 were made to purchase PPE N$90 000 was paid under finance leases The receivables at the end of 2018 includes N$100 000 of interest receivables. There was no balance at the beginning of the year. Investment income of N$680 000 is made up of N$300 000 interest receivable and N$380 000 dividends received. Dividends paid during the year were N$1 200 000. Required: A. Prepare a Statement of cash flows for Mars Ltd for the year ended 31 March 2018 in accordance with IAS 7 Statement of cash flows using the indirect method.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 19BEA

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Statement of Profit / Loss and other comprehensive income for the year ended 31 March 2018

	N$ 000
Sales	30 650
Cost of sales	(26 000)
Gross Profit	4 650
Distribution costs	(900)
Administration costs	(500)
Profit from operations	3 250
Investment income	680
Finance costs	(400)
Profit before tax	3 530
Income tax expense	(300)
Profit for the period	3 230

Statement of financial position as at 31 March 2018

	2018 N$ 000	2017 N$ 000
Non-current assets	4 780	3 350
PPE	2 280	850
Investments	2 500	2 500

Current assets	3 310	3 310
Inventories	1 000	1 950
Trade and other receivables	1 900	1 200
Cash and cash equivalents	410	160
Total assets	8 090	6 650
Equity and liabilities
Total equity	4 910	2 660
Share capital	1 000	900
Share premium	500	350
Retained earnings	3 410	1 410
Liabilities
Current liabilities	880	2 990
Trade and other payables	250	1 890
Interest payables	230	100
Taxation	400	1 000
Long term liabilities	2 300	1 010
Long term borrowings	2 300	1 010
Total equity and liabilities	8090	6 650

Additional information:

Profit from operations is after charging depreciation on Property plant and equipment of N$450 000
During the year ended 31 March 2018 Plant and machinery costing N$80 000 and with accumulated depreciation of N$60 000 was sold for N$20 000.
During the year ended 31 March 2018 the company acquired Property plant and equipment costing N$1 900 000 of which N$900 000 was acquired by means of finance leases. Cash payments of N$1 000 000 were made to purchase PPE
N$90 000 was paid under finance leases
The receivables at the end of 2018 includes N$100 000 of interest receivables. There was no balance at the beginning of the year.
Investment income of N$680 000 is made up of N$300 000 interest receivable and N$380 000 dividends received.
Dividends paid during the year were N$1 200 000.

Required:
A.	Prepare a Statement of cash flows for Mars Ltd for the year ended 31 March 2018 in accordance with IAS 7 Statement of cash flows using the indirect method.

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