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Balance Sheet

2 You have received the following financial statements of Pie Ltd for the year ended 30 April 2003, but you do not have the company's Balance Sheet for the previous year.

Balance Sheet as at 30 April 2003
Cost Depn Net Book
Fixed assets
Intangible: Goodwill
Tangible: Freehold premises 600 600
Plant and machinery 520 280 240
Motor vehicles 135 85 50
1255 365 890
Current Assets
Stock 212
Debtors 96
308
Creditors: amounts falling due within one year
Bank 36
Trade creditors 63
Ordinary dividend 20 119 189
1079
Creditors: amounts falling due after more than one year
10% debentures 2002/2005 80
999
Share capital and reserves
Ordinary shares of $1 300
Share Premium account 105
Revaluation reserve 360
General reserve 100
Retained profit 134
999

Extract from Profit and Loss Account for the year ended 30 April 2003

Operating profit 119
Interest on debentures 10
109
Transfer to General Reserve 20 B
Ordinary dividends ? paid 10
proposed 20 50
59 A

Cash Flow Statement for the year ended 30 April 2003
$000 $000 $ $
Cash inflow from operating activities (see below) 226 226
Servicing finance -10
Debenture interest paid -3 -13
Preference share dividend paid (2) (13)
Capital expenditure
Payments to acquire tangible fixed assets
Plant and machinery -250
Motor vehicles -62
Receipts from sale of tangible fixed assets (see below) _4j ( 41 -271
-58
Equity dividends paid L2 -25
-83
Financing
Issuing of ordinary share capital rdinary share Capital 100
Redemption of preference shares -115
Redemption of debentures -40 -55
Decrease in cash (1 -138
Reconciliation of operating profit with net cash inflow from operating activities

Operating profit 119
Goodwill written off 30
Depreciation: plant and machinery 150
motor vehicles 50
Loss on sale of motor vehicle (see 1. below) 4
Profit on sale of plant and machinery (see 2. below) -15
Increase in stock -40
Increase in debtors -28
Decrease in creditors -44
Net cash inflow from operations 226
Further information relevant to the year ended 30 April 2003:
Motor vehicles which had cost $35 000 were sold for $6000.
2. Plant and machinery which had cost $?O 000 w sold for $35 000
3. The freehold premises were purchased on 1 May 1993 t had been depreciated annually at the rate of 4% on cost.
4. $40 000 debentures had been redeemed at par on 31 October 2002.
5. The company redeemed its 6% preference shares at a premium of $0.15 on 1 May 2002. The shares had been issued at $1.20. The redemption was financed by an issue of 50000 ordinary shares at $2.00 each.
REQUIRED
Prepare Pie Ltd's Balance Sheet as at 30 April 2002.

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Solution Summary

Prepares Pie Ltd's Balance Sheet as at 30 April 2002 using the data provided.

$2.19