- 20 Marks
CIBG – FRPA 2022 – L3 – Q2 – Adjebinge Ltd Cash Flow Statement
Prepare the statement of cash flows for Adjebinge Ltd for the year ended 31 March 2022 using the provided financial extracts.
Question
ADJEBINGE LTD. (a) Adjebinge Ltd. is a wholesaler and retailer of office furniture. Extracts from the company’s financial statements are set out below:
Statement of comprehensive Income for the year ended:
| 31 March 2022 | 31 March 2021 | |
|---|---|---|
| GH¢ ‘000 | GH¢ ‘000 | |
| Revenue: | ||
| — cash | 12,800 | 26,500 |
| — credit | 53,000 | 28,500 |
| 65,800 | 55,000 | |
| Cost of sales | (43,800) | (33,000) |
| Gross profit | 22,000 | 22,000 |
| Operating expenses | (11,200) | (6,920) |
| Finance costs: | ||
| — loan notes | (380) | (180) |
| — overdraft | (220) | (180) |
| (600) | (360) | |
| Profit before tax | 10,200 | 14,900 |
| Income tax expense | (3,200) | (4,400) |
| Profit for the year | 7,000 | 10,500 |
| Other comprehensive income: | ||
| Gain on property revaluation | 5,000 | 1,200 |
| Total comprehensive income | 12,000 | 11,700 |
Statement of changes in equity for the year ended 31 March 2022
| Stated Capital | Capital Surplus | Income Surplus | Total | |
|---|---|---|---|---|
| GH¢ ‘000 | GH¢ ‘000 | GH¢ ‘000 | GH¢ ‘000 | |
| Balances b/f | 8,500 | 2,500 | 15,800 | 26,800 |
| Share issue | 12,900 | 12,900 | ||
| Comprehensive income | 5,000 | 7,000 | 12,000 | |
| Dividends paid | (4,000) | (4,000) | ||
| Balances c/f | 21,400 | 7,500 | 18,800 | 47,700 |
Statements of financial position as at 31 March:
| 2022 | 2021 | |
|---|---|---|
| GH¢ ‘000 | GH¢ ‘000 | |
| Asset | ||
| Non-current assets (see note) | ||
| Cost | 93,500 | 80,000 |
| Accumulated depreciation | (43,000) | (48,000) |
| 50,500 | 32,000 | |
| Current assets | ||
| Inventories | 5,200 | 4,400 |
| Trade receivables | 7,800 | 2,800 |
| Bank | 700 | |
| 13,000 | 7,900 | |
| Total assets | 63,500 | 39,900 |
| Stated capital | 21,400 | 8,500 |
| Capital surplus | 7,500 | 2,500 |
| Income surplus | 18,800 | 15,800 |
| 47,700 | 26,800 | |
| Non-current liabilities | ||
| 10% loan notes | 4,000 | 3,000 |
| Current liabilities | ||
| Bank overdraft | 3,600 | |
| Trade payables | 4,200 | 4,500 |
| Taxation | 4,000 | 5,600 |
| 11,800 | 10,100 | |
| Total equity and liabilities | 63,500 | 39,900 |
You are required to:
Prepare a statement of cash flows for Adjebinge Ltd. for the year ended 31 March 2022 in accordance with IAS 7: Statement of Cash Flows. (20 marks)
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