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    Balance Sheet

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    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

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