Categories
ACCA P2 Financial statements of groups of entities

Revision question on preparation of cash flow statements.

Revision question on preparation of cash flow statements.

The following information relates to the draft financial statements of Kigali summarized statements of financial position as at:

31 March 2013 31 March 2012
Frw’000 Frw’000 Frw’000 Frw’000
Assets
Non-current assets
Property, plant and equipment (note (i)) 19,000 25,000
Current assets
Inventory 12,500 4,600
Trade receivables 4,500 2,500
Tax refund due 500
Bank 1,500
Total assets 36,500 33,600
Equity and liabilities
Equity
Equity shares of Frw 1 each (note (ii)) 10,000 8,000
Share premium (note (ii)) 3,200 4,000
Retained earnings 4,500 7,700 6,300 10,300
17,700 10,300 18,300
Non-current liabilities
10% loan note (note (iii)) 5,000
Finance lease obligations 4,800 2,000
Deferred tax 1,200 6,000 800 7,800
Current liabilities
10% loan note (note (iii)) 5,000
Tax 2,500
Bank overdraft 1,400
Finance lease obligations 1,700 800
Trade payables 4,700 12,800 4,200 7,500
Total equity and liabilities 36,500 33,600

Summarized income statements for the years ended:

31-Mar-2013 31-Mar-2012
Frw,000 Frw,000
Revenue 55,000 40,000
Cost of sales 43,800) (25,000)
Gross profit 11,200 15,000
Operating expenses (12,000) (6,000)
Finance costs (note (iv)) (1,000) (600)
rofit (loss) before tax (1,800) 8,400
Income tax relief (expense) 700 (2,800)
rofit (loss) for the year (1,100) 5,600

The following additional information is available: read more

Categories
MANAGEMENT ACCOUNTING ACCA F5 ACCA P5

Relevant cost – meaning.

Relevant cost - meaning.



Relevant cost are future cash flows arising as a direct consequence of decision.
Relevant cost must be:

  • the cost that will occur in the future
  • cost that will result in the cash flow
  • arise as direct consequence of the decision
  • read more