Preparation of a statement of cash flows A summarized comparative statement of financial position of Fuchsia Ltd is presented below:
Assets
Current assets:
Trade accounts receivable 65,000
Inventories 58,000
Prepayments 10,000
Total current assets 133,000
Non-current assets:
Land 80,000
Plant 280,000
Accumulated depreciation (60,000)
Total non-current assets 300,000
Total assets 433,000
Liabilities and Equity
Current liabilities:
Accounts payable 45,000
Borrowings 160,000
Total current liabilities 205,000
Non-current liabilities:
Borrowings 200,000
Total non-current liabilities 200,000
Equity:
Share capital 200,000
Retained earnings 28,000
Total equity 228,000
Total liabilities and equity 433,000
Additional information:
There were no disposals of land or plant during the year. A $30,000 borrowing was obtained through the issue of ordinary shares. There were no other repayments of borrowings. Profit for the year was $120,000, interest expense was $14,000, and income tax expense was $41,000. There were no items of other comprehensive income. A $73,000 dividend was paid during the year. Sales revenue for the year was $300,000. There was no other revenue.