Chat with us, powered by LiveChat Cost at 1 January 2001AcquisitionsDisposalCost at - Writemia

Cost at 1 January 2001AcquisitionsDisposalCost at

Cost at 1 January 2001AcquisitionsDisposalCost at 31 December 2001Accumulated depreciation:Balance brought forwardCharge for the yearDisposalsAccumulated depreciation:Balance as at 31 December 200110,0004,730 -14,7303,500650 -4,15015,000-(5,000)10,0006,0001,500(4,500)3,00025,0004,730(5,000)24,7309,5002,150(4,500)7,150 Other information:Tax charge for the year was Sh.400,000. The opening balance on the tax liability account was Sh.100,000.The proposed final dividend for the year 2001 was Sh.120,000.Other expenses include insurance, which is paid a year in advance on 30 June. In the year 2000, insurance of Sh.300,000 was paid. The amount paid in the year 2001 was Sh.400,000.Accrued wages were Sh.75,000 at 1 January 2001 and Sh.95,000 at 31 December 2001. Stocks were Sh.1,500,000 at January 2001 and Sh.1,700,000 at 31 December 2001.All Sh.700,000 paid on the finance lease in the year 2001 represented capital. This was the first year of the lease and interest was not paid until the second payment, which was made in the year 2002. Interest at Sh.403,000 was included in the year 2002 payment and was accrued in the year 2001 financial statements.Opening and closing trade debtors and trade creditors were:1 January 2001Sh.31 December 2001Sh.Trade debtorsTrade creditors300,000500,000450,000475,0006,000 ordinary shares of Sh.100 per value were issued at a premium on 1 March 2001.Revenue reserves of Pivot Ltd. as at 31 December 2000 were Sh.948,000Revenue reserves of Pivot Ltd as at 31 December 2001 were Sh.1,680,000.Required:A statement of cash flow using the direct method, including a reconciliation of the profit for the year with cash from operations (15 marks) (Total: 20 marks)

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