Accounting Business Reporting for Decision Making

316 Accounting: Business Reporting for Decision Making

Beef and Wine Ltd

Balance sheet as at 31 December 2016 and 2017

2017

$’000

2016

$’000

Non-current assets

Land and buildings

Plant and machinery at cost

Less: Accumulated depreciation

216

51

129

165

203

43

97

160

294 257

Total assets 384 342

Current liabilities

Accounts payable

Income tax payable

Accrued expenses

36

26

10

62

18

8

72 88

Non-current liabilities

Loan 125 118

Equity

Paid-up ordinary capital

Retained earnings

133

54

123

13

187 136

Total liabilities and equity 384 342

The notes from the financial statements reveal that there were no disposals of land, plant or

machinery. There was a new share offer of $10 000. A new loan of $15 000 was taken out, and an

existing loan of $10 000 was paid. A dividend of $21 000 was paid.

Required

Prepare a statement of cash flows for Beef and Wine Ltd for 2017.

7.44 Preparing a reconciliation of cash flows    LO 3

Prepare a reconciliation of cash flows from operating activities and profit after tax for Beef and

Wine Ltd from problem 7.43.

7.45 Evaluating a statement of cash flows    LO 4

Refer to problems 7.43 and 7.44 and evaluate Beef and Wine Ltd’s statement of cash flows.

7.46 Preparing and analysing a statement of cash flows LO 4

Haily Smith and Amelia Wee are discussing the results of their Aqeo Partnership. Presented below

is the Aqeo Partnership statement of cash flows for the year ended 31 December 2017.

Aqeo Partnership

Statement of cash flows for the year ended 31 December 2017

Beginning cash balance, 1 January 2017 $ 120 000

Cash inflows

Inventory sales

Plant and equipment sales

Interest on investments

Depreciation

Sale of land

Injection of equity capital

Loan

Total cash inflows

$500 000

130 000

8 000

12 000

200 000

100 000

80 000

1 030 000