The following information is available for Ziyana: Statement of Financial Position at 31st December 2016 2015...

The following information is available for Ziyana:
Statement of Financial Position at 31st December
		2016		2015

Assets
Non-current assets
Cost/valuation		11000000		8000000
Acc Depn		-5600000		-4800000
Carrying amount		5400000		3200000
Current Assets
Inventories	3400000		3800000
Receivables	3800000		2900000
Cash at bank	400000	7600000	100000	6800000
Current liabilities
Trade payables	3700000		3200000
Tax	700000	-4400000	600000	-3800000
Non-current Liablities
10% Loan notes		-3000000		-2000000
		5600000		4200000
Equity and liabilities
Equity
Ordinary share capital		1000000		1000000
Revaluation surplus		1500000		1000000
Retained earnings		3100000		2200000
		5600000		4200000
Summarised statements of profit and loss for the year ended 31st December 2016

Profit from operations			2650000
Finance cost (loan note interest)			-300000
Income tax expense			-700000
Profit for the year			1650000

Notes

(a) During the year non-current assets which had cost £800,000, with a carrying value amount of £350,000, were sold for £500,000 (b) The revaluation surplus arose from the revaluation of some land that was not being depreciated (c) The 2015 income tax liability was settled at the amount provided for at 31st December 2015 (d) The additional loan notes were issued on 1st January 2016. Interest was pad on 30th June and 31st December 2016 (e) Dividends paid during the year amounted to £750,000.

Required
(a) Prepare the company’s statement of cash flows for the year ended 31st December 2016, using indirect method

(b) Calculate the current ratio, quick ratio and gearing ratio for Ziyana for the year ended 31st December 2016 if the following transaction occurred on that date: (i) Customers paid £1,000,000 (ii) A further £1,000,000 10% loan notes were issued (iii) Suppliers were paid £2,000,000

Expert Solution

jeff jeffy answered 2 years ago

The statement of financial position of a company at year ended 31st December 2000 reflects the...

The statement of financial position of a company at year ended 31st December 2000 reflects the following status: Amount (Rs.) Plant under installation 2000,000 Other assets 8000,000 10,000,000 Loans Bank Loan 18% 2,000,000 Bank Loan 20% 2,500,000 Bank Loan 22% 1,500,000 6,000,000 Shareholder’s Equity 4,000,000 10,000,000 Bank loan of 20% was taken on April 1, 2000. Other loans were brought forward from 1999. Expenditures incurred on plant under installation: April 01, 2000 1,000,000 June 01, 2000 700,000 September 01,...

Financial statement information is provided for the three years ending December 31, 2015, 2016 and 2017....

Financial statement information is provided for the three years ending December 31, 2015, 2016 and 2017. 2017 2016 2015 Cash $443,550 $355,750 $142,800 Accounts Receivable $59,600 $62,500 $58,400 Merchandise Inventory $87,000 $90,100 $85,000 Prepaid Expenses $6,400 $5,800 $5,800 Notes Receivable, due in 2018 $5,000 $5,500 $5,000 Property, Plant & Equipment $580,175 $518,525 $528,950 Accumulated Depreciation $114,175 $96,525 $97,950 Accounts Payable $16,900 $17,800 $15,000 Unearned Sales $6,100 $6,500 $7,400 Notes Payable, due in 2017 $119,000 $126,000 $124,000 I.C. Rhodes, Capital $1,075,550...

Suppose you are given the following financial statement information for 2015 and 2016. Calculate the operating...

Suppose you are given the following financial statement information for 2015 and 2016. Calculate the operating cash flows (OCF) for 2016. (Enter a whole number). Income Statement (2016) Balance Sheet Sales $9,352 2015 2016 Cost of goods sold $3,612 Cash $2,450 $2,856 Other Expenses $95 Accounts Receivable $1,690 $1,780 Depreciation $1,250 Inventory $3,570 $3,460 EBIT $4,395 Current Assets $7,710 $8,096 Interest $45 Net Fixed Assets $4,289 $4,319 EBT $4,350 Total Assets $11,999 $12,415 Taxes (30%) $1,305.00 Net income $3,045.00 Accounts Payable...

The December 31, 2016, statement of financial position of Cotton Corporation includes the following: 9% bonds...

The December 31, 2016, statement of financial position of Cotton Corporation includes the following: 9% bonds payable due December 31, 2025 $718,900 The bonds have a face value of $700,000 and were issues on December 31, 2015, at 103, with interest payable on July 1 and December 31 of each year. Cotton uses straight-line amortization to amortize bond premiums or discount. On March 1, 2017, Cotton retired $280,000 of these bonds at 98 plus accrued interest. Ignoring income taxes, what...

The statement of financial position of Dai Sing Ltd as at 31 December 2016 showed a...

The statement of financial position of Dai Sing Ltd as at 31 December 2016 showed a balance in Accounts Receivable of $1,753,800, and a credit balance in Allowance for Doubtful Accounts of $210,456. During the financial year ended 31 December 2017, the following transactions occurred: sales on account $5,566,300; sales returns $340,000; collections from customers $5,072,800; accounts written off $209,000; discount allowed $8,800; and collection of previously written off accounts of $57,000. Required a ‘The direct write-off method of accounting...

The following information is available at December 31st for Byron Inc.: Number of Days Outstanding Accounts...

The following information is available at December 31st for Byron Inc.: Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectable 1-30 days $85,000 5% 31-60 days 25,000 15% 61 - 90 days 10,000 25% Total 120,000 Instructions Calculate the estimated value of uncollectible accounts and the net realizable value of Byron’s accounts receivable at December 31st. Prepare the adjusting journal entry at December 31st to record bad debt expense given that the Allowance for Doubtful Accounts has a credit balance...

A partial statement of financial position of Carla Vista Ltd. on December 31, 2016, showed the...

A partial statement of financial position of Carla Vista Ltd. on December 31, 2016, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2016): Buildings $300,000 Less: accumulated depreciation 100,000 $200,000 Equipment $131,000 Less: accumulated depreciation 51,000 80,000 Carla Vista uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Carla Vista...

Question 8 A partial statement of financial position of Cullumber Ltd. on December 31, 2016, showed...

Question 8 A partial statement of financial position of Cullumber Ltd. on December 31, 2016, showed the following property, plant, and equipment assets accounted for under the cost model (accumulated depreciation includes depreciation for 2016): Buildings $312,000 Less: accumulated depreciation 93,000 $219,000 Equipment $134,000 Less: accumulated depreciation 56,000 78,000 Cullumber uses straight-line depreciation for its building (remaining useful life of 20 years, no residual value) and for its equipment (remaining useful life of 8 years, no residual value). Cullumber applies...

JorEx a Jordanian listed company issued its financial statements on the 31st of December 2015. The...

JorEx a Jordanian listed company issued its financial statements on the 31st of December 2015. The company does not issue comparative statements. The company Audit report in 2014 was qualified due to material departure from IFRS in accounting for inventory. The company now Accounts for their inventory using FIFO. suppose you are an auditor JorEx asked to review the financial statements. Required: 1. Can you conduct a review Explain your answer? 2. Based on your answer what would you advise...

Dream Limited Statement of Financial Position as at 31 December: 2015 2014 $’000 $’000 Assets: Land...

Dream Limited Statement of Financial Position as at 31 December: 2015 2014 $’000 $’000 Assets: Land 350 200 PPE 950 510 Accumulated depreciation (380) (240) 570 270 Cash at bank 20 - Inventories 110 200 Accounts receivable 200 180 Total 1,250 850 Liabilities: Accounts payable 160 210 Bank overdraft 0 20 Salary payable 40 20 Tax payable 80 60 Dividends Payable 50 30 8% debenture 160 180 Total 490 520 Equity: Ordinary shares of $1 300 190 Share premium 90...

Question