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Emma Co. Financial Statements 20X2

The financial statements of Emma Co for the year ended 31 December 20X2 show a profit for the year of $160,000, with total assets increasing from $948,000 in 20X1 to $1,222,000 in 20X2. Key changes include an increase in share capital and retained earnings, alongside a long-term loan rising to $130,000. The document also outlines additional information regarding asset sales, provisions for environmental costs, and dividends paid during the year.

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7 views3 pages

Emma Co. Financial Statements 20X2

The financial statements of Emma Co for the year ended 31 December 20X2 show a profit for the year of $160,000, with total assets increasing from $948,000 in 20X1 to $1,222,000 in 20X2. Key changes include an increase in share capital and retained earnings, alongside a long-term loan rising to $130,000. The document also outlines additional information regarding asset sales, provisions for environmental costs, and dividends paid during the year.

Uploaded by

stephanomakwacha
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Set out below are the financial statements of Emma Co.

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X2


$'000
Revenue 2,553
Cost of sales (1,814)
Gross profit 739
Other income: interest received 25
Distribution costs (125)
Administrative expenses (264)
Finance costs (75)
Profit before tax 300
Income tax expense (140)
Profit for the year 160
STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER
20X2 20X1
Assets $'000 $'000
Non-current assets
Property, plant and equipment 380 305
Intangible assets 250 200
Investments – 25
Current assets
Inventories 150 102
Receivables 390 315
Short-term investments 50 –
Cash in hand 2 1
Total assets 1,222 948

20X2 20X1
Equity and liabilities $'000 $'000
Equity
Share capital ($1 ordinary shares) 200 150
Share premium account 160 150
Revaluation surplus 100 91
Retained earnings 260 180
Non-current liabilities
Long-term loan 130 50
Environmental provision 40 -
Current liabilities
Trade payables 127 119
Bank overdraft 85 98
Taxation 120 110
Total equity and liabilities 1,222 948
The following information is available.
(a) The proceeds of the sale of non-current asset investments amounted to $30,000.
(b) Fixtures and fittings, with an original cost of $85,000 and a net book value of $45,000,
were sold for $32,000 during the year.
(c) The following information relates to property, plant and equipment.
31.12.20X2 31.12.20X1
$'000 $'000
Cost 720 595
Accumulated depreciation 340 290
Net book value 380 305
(d) On 31 December 20X2 Emma purchased a chalk quarry from which extraction will take
place for five years. At the end of that time Emma will be obliged to close off the quarry and
make the area safe. The cost of this has been estimated and discounted to a present value
of $40,000, which is included in the carrying amount of the quarry and shown as a
provision.
(e) 50,000 $1 ordinary shares were issued during the year at a premium of 20c per share.
(f) The short-term investments are highly liquid and are close to maturity.
(g) Dividends of $80,000 were paid during the year.
Required
Prepare a statement of cash flows for the year to 31 December 20X2 using the format laid
out in IAS 7.

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