Part B consists of 5 questions for a total of 85 marks. Each question should be

Question

Part B consists of 5 questions for a total of 85 marks. Each question should be answered on the answer booklet provided. Question 1: Statement of Cash Flows (17 marks) The following information relates to F&K; Ltd F&K; Ltd Comparative Statement of Financial Position as at 31 December 2017 2017 2016 urrent Assets 95,000 105 330,000150,00 (20,000) (10,000 270,000 260,00 ash Accounts receivable llowance for doubtful debts Prepaid insurance 10,00 5,00 Non-Current Assets 540 480 pment 587 585 (332,000) (245,000 Total Assets 1,480,000 1,330, urrent Liabilities 190 64 24 360 52, 16, s payable ages payable ividend payable Non-Current Liabilities rrowings Total Liabilities Net Assets 746,000 488,00 1,024, 916, 414, hareholders' Equitv 250,000 240,00 90,00050,00 0 20,00 Share capital t revaluation reserve (Land) iéneral reserve Retained earnings Total Shareholders' Equity 6,000104,00

Explanation / Answer

Particulars Amount Cash flow from Operating Activities Cash received from Customers Note 1    1,80,000.00 Purchase of Inventory Note 2      -10,000.00 Insurance payment Note 3        -5,000.00 Cash paid to Vendors Note 4 -1,70,000.00 Wages paid Note 5      -12,000.00 Rent paid        -9,000.00 Cash flow from Operating Activities(A)      -26,000.00 Cash flow from Investing Activities Cash paid for purchase of Land Note 6      -20,000.00 Cash paid for purchase of Equipment Note 7      -84,000.00 Cash received on Sale of Equipment Note 7        70,000.00 Cash flow from Investing Activities (B)      -34,000.00 Cash flow from Financing Activities Borrowings Note 8    2,58,000.00 Issue of Shares Note 9        10,000.00 Dividend paid Note 10        -8,000.00 Cash flow from Financing Activities( C )    2,60,000.00 Total Net Cash Flow (A+B+C)    2,00,000.00 Opening Cash Balance        95,000.00 Closing Cash Balance    1,05,000.00 Cash Balance    2,00,000.00 Notes Amount 1 Cash received from Customers Opening Balance 1,50,000.00 Closing Balance 3,30,000.00 Balance 1,80,000.00 2 Purchase of Inventory Opening Balance 2,60,000.00 Closing Balance 2,70,000.00 Balance      10,000.00 3 Insurance payment Opening Balance        5,000.00 Closing Balance      10,000.00 Balance        5,000.00 4 Cash paid to Vendors Opening Balance 3,60,000.00 Closing Balance 1,90,000.00 Balance 1,70,000.00 5 Wages paid Opening Balance      52,000.00 Closing Balance      64,000.00 Balance    -12,000.00 6 Cash paid for purchase of Land Opening Balance 4,80,000.00 Closing Balance 5,40,000.00 less:Revalued asset    -40,000.00 Balance      20,000.00 7 Cash paid for purchase of Equipment Opening Balance 5,85,000.00 Sale of assets    -70,000.00 Closing Balance 5,87,000.00 Add:Depreciation      12,000.00 Balance    -84,000.00 8 Borrowings Opening Balance 4,88,000.00 Closing Balance 7,46,000.00 Balance 2,58,000.00 9 Issue of Shares Opening Balance 2,40,000.00 Closing Balance 2,50,000.00 Balance      10,000.00 10 Dividend paid Opening Balance      16,000.00 Closing Balance      24,000.00 Balance        8,000.00

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