The following information relate to the financial Statements of Rafiki limited. Rafiki Limited…
Rafiki Limited
Balance Sheet
As at 30 June 2010
| 2010 |
2009 |
|
| Sh |
Sh |
|
| Assets: | ||
| Non Current Assets | ||
| Plant and Equipment | 11,200,000 | 10,830,000 |
Accumulated Depreciation (2,400,000)
8,800,000
Investments 420,000 210,000
Prepaid lease Rentals 380,000
9,600,000
| Current assets | ||
| Inventory | 3,180,000 | 2,670,000 |
| Accounts Receivable net | 1,620,000 | 1,740,000 |
| Prepaid Expenses | 120,000 |
60,000 |
Cash 480,000
5,400,000
| Total assets | 15,000,000 | 14,100,000 | |
| Equity and Liabilities | |||
| Capital and Reserves | |||
| Share Capital: ordinary Shares of Sh.10 each | 4,400,000 | 4,000,000 | |
| Share Premium | 700,000 | 500,000 | |
| Accumulated Profit | 3,150,000 | 3,825,000 | |
| 8,250,000 | 8,325,000 | ||
| Non-Current Liabilities | |||
| Bond Payable | 3,750,000 | 3,600,000 | |
| Current Liabilities | |||
| Accounts Payable | 2,700,000 | 1,800,000 | |
| Accrued Payables | 300,000 | 375,000 |
3,000,000
Total Equity and Liabilities 15,000,000 Rafiki Limited
| Income Statement | ||||
| For the Period ended 30 June 2010 | ||||
|
Sh. |
||||
| Sales | 13,000,000 | |||
| Cost of Sales | (8,105,000) | |||
| Gross Margin | 4,895,000 | |||
| Operating Expenses | (5,000,000) | |||
| Loss on sale of equipment | (60,000) | |||
| Operating loss | (165,000) | |||
| Finance Cost | (240,000) | |||
| Net loss for the period | (405,000) |
The following additional information relating to 2009 has been assembled by the company;
i. Equipment costing Kshs. 480,000 on which there was accumulated depreciation of Kshs. 250,000 was sold at a loss of Kshs. 60,000
ii. The Company declared and paid Kshs. 270,000 in cash dividends
Required;
Prepare a statement of cash flows for the year ended 30th June 2010 for Rafiki Limited in accordance with the requirements of International Accounting standard No. 7.
