Leaving Cert Accounting Cash Flow Statements: Cash Flow Statement

The followi

Question

Cash Flow Statement

The following are the Balance Sheets of Norris plc as at 31/12/2008 and 31/12/2009 together with an abridged Profit and Loss account for the year ended 31/12/2009.

Abridged Profit and Loss Account for the year ended 31/12/2009

€
Operating Profit 179,000
Interest for the year 18,000
Profit before taxation 161,000
Taxation for the year 43,000
Profit after taxation 118,000
Dividends paid 64,000
Retained profits for the year 54,000
Retained profits on 01/01/2009 182,000
Retained profits on 31/12/2009 236,000

Balance Sheet as at

31/12/2009 31/12/2008

Fixed Assets
Land and Buildings at cost 800,000 725,000
Less accumulated depreciation 60,000 740,000 65,000 660,000
Machinery at cost 300,000 200,000
Less accumulated depreciation 90,000 920,000 175,000 85,000

Financial Assets
Quoted Investments 60,000 25,000

Current Assets
Stocks 212,000 194,000
Debtors 188,000 175,000
Government Securities 15,000 15,000
Bank 3,000 2,000
Cash 5,000 3,000

Less Creditors: amounts falling due within 1 year
Trade creditors 418,000
Interest due 5,000 401,000 4,000 390,000
Taxation 4,000 400,000

Net Current Assets 79,000 87,000
Financed by:
Creditors: amounts falling due after more than 1 year
10% Debentures 80,000

Capital and Reserves
Ordinary Shares at €1 each 680,000 660,000
Share Premium 20,000 20,000
Profit and loss account 236,000 182,000

The following information is also available:
1. There were no disposals of buildings during the year but new buildings were acquired.
2. There was a loss on the disposal of machinery during the year for €30,000.

You are required to:
(a) Prepare the Cash Flow Statement of Norris plc for the year ended 31/12/2009 including
Reconciliation Statements.

(b) Explain the distinction of preparing a Cash Flow Statement.
1. Distinguish between a cash expense and a non-cash expense.

Cash Flow Statement The following are the Balance Sheets of Norris plc as at 31/12/2008 and 31/12/2009 together with an abridged Profit and Loss account for the year ended 31/12/2009 - Leaving Cert Accounting - Question 2 - 2010

Worked Solution & Example Answer:Cash Flow Statement The following are the Balance Sheets of Norris plc as at 31/12/2008 and 31/12/2009 together with an abridged Profit and Loss account for the year ended 31/12/2009 - Leaving Cert Accounting - Question 2 - 2010

Prepare the Cash Flow Statement of Norris plc for the year ended 31/12/2009 including Reconciliation Statements.

Explain the further distinction of preparing a Cash Flow Statement.

Distinction Between Cash Expense and Non-Cash Expense

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