duestion | (a) (b) 4 Ténc He lagevazn NC V4Z]% Nov 201) Cash flow statement for the year ended 31 December 2005 $000 $000 Net profit 739(1) Depreciation: Premises Motor vehicles Plant and equipment Loss on disposal of motor vehicle ting profit before working capital changes 1735 ease in stock / mer whey (60)(1) 109(1) Increase in ereditors/‘e. 3 8001) Net cash inflow fro oye ea R64 ‘hase of motor vehicles 4 (780)(1) ase of plant and equipment \(800)(1) Sale of motor vehi 30(1) Net cash used in inv ting activities (1 550) Financing activities Drawings 3a) in cash and cash equivalents (20). , h and cash equivalents at 1 January 2005 —400, Cash and cash equivalents at 31 December 2005 To provi a company Abed To give an indication of the quality(4) of profit eamed, [heh 4 ‘To assess the ability of the company to generate cash,(1)2 To assess the enterprise’s ability to influence the amounts and timing of cash generated, (1), 7 va nformation on the liquidity(L, viability(E) and financial adaptability 1 mark for stating, 1 for e laining - up t8 10 marks ‘Total for the question 22 marks | Cash « rip th Cee e Luvrls lunclted bao rat ben pods wuld neg rept te thaws pe Pepin frtiue. a Inet based bv aes ay divalepratd eae es Maal “ENB i Ea i vet (ee. ae teal rect kd ery i aS[2 | 5 Capital Accounts if Anesu [Baye | Chamu ~] Dahwa Anesu” |Baye —)Chamw [Dahwa 2 $000 | $000 | $000 | sooo $000_| $000_|s.a00_|s 000 TW PE 3p yale seersaichadin su) Pye2say Bal bia | 1205 | 1070! 830] 575 |* pd i ss | S6(2) ech 48 825i] Goodwill 90(1)| Lealtae"'| 1 ooo) { Aste id Cash 40,1251) Bal cid 930,751) 690,754)505,375) | : te ll - 1295 1070} 830 | Gao | 1295|_ 1070} 830) 640 wt (1) oF QQ) (by (b)Goodwill 24(2) | | 802 |[Bal bid [930,75 |690,75 {505.375 avert} 906,75| 756,75 | 523,375] 770° |icash |830() |Goodwill | 66(2)|__18(2) I iF tel pret T 930,75 756,75 | 523,375 | 830 1930,75_| 756,75 |523,375 830 1 pa j TST Baye [| Chamu | Dahwa | Chipo Baye | Chamu | Dahwa | Chipo Bal b/d | 906,75 | 756,75 1523.375| 770._| Workings z Revaluation $000 | $000 Plant and machinery 110 Capital: Anesu 184,875, Motor vehicles 276 Baye 103.25 Debtois (wwe [ys had Qelaks \ 27 ‘Chamu 103.25 = Dahwa 51, 625 413 (©) Goodwill is the differences between the va alue of the business as a whole and the aggregate of the fair values of its separable net assets, Total for the quéstion 27 marks h—te peace a a intsis of fete lacy a poesia | of edrrye fe ulSC = 1200, (a) Balance Sheet as at 31 December 2007 ero Assets $000 $000 $000 | Cost/ Depreciation} NBV. Non current assets Valuation Freehold premises 1300 wid 1222 Plant and equipment 2.000 800700 | +200-11 lotor vehicle 1800 1440 360 5100 2318 2Br. \Current assets ~ AERA Stock(-30(1) + 80(1)), x 2 fw 8b 886 Debtors (-104 (1) - 42(1) of 2 ft Hie 416 Less provision for doubtful debts 20,81) | 395.2 Bank (+750)(1) oy | 4 (2 1350. 2631.2 I S415 207 |Equity and Liabilities Eerecal Ordinary shares (+500(1)}+500(1)) | \° '3500" Share premium (— Se paso) % 320 63 P&L+IE(Y) — 20, sq) 3001 OM) of The | 54,2 643,2) fae | 9183 Beg 500(1) Current liabilities Creditors 7 200 Proposed dividend (+250)(1) ay 9xu | w+4 250 450 5 31%) (20) BONUS ISSUE RIGHTS ISSUE J i i 3 pow (a) Free of charge 7 (@) Shareholders pay Qy7 (b) No increase in total equity / Cb) Total equity increases) (| (©) Noinerease in assets / (©) An increase in assets @y // (4) Every shareholder participaes » i (d) Some shareholders may eee over not to participate % nawed cof ectaid Ul eect Resa ~ Hh 1 LOE” EIRENE ae ’ ‘seria tlk a we piind hada ge | bic Total for the question 26 ‘ark bls maternal eg neehasvaiclapiat din terms of complied titidey mplete represent SO completed units(1) 4) Work in pr sh" 2g THU TOO Used to value closing stock in process costing(1) 3 yi (b) Lido Beta Sigma Sales 2.000 2500 2250 Add Closing stock 350 450, 300 r 2350 2950 2550 Less Opening stock 550 500 Production * _1.950(1) 2.400(1) 2050(1) [3] © — @ Joint costs apportioned 14.625(1) 18 00011) 15 375) Additional processing costs ; 19 200 18.450 Total production cost 14 625 37 200 33 825 Unit cost +1950 2400% +42 050'¢ 2 ot 3f $7,500) $15,50(1) $16,50(1) . x 350 x 450 x 300 Closing stock , 3$2625(1) $6 975(1) $4.950(1) Ve Ph ie a Ol aa Bo hye f (il) Lido Beta ji. Joint costs apportioned 12 564(1) 16-567(1) 18-869(1) Additional processing costs. 19 200 18 450 Total production cost «7 12564 35 767 37319 ” no waar ke (yr Unit cost £1950 +2400 +2050 Cos} pel ual ' 36,44 $14.90 $18,20 , eal Closing stock x 350 x 450 x 300 2% HET FSG i $2.254(1) UF 56-705(1) $5 460(1) [6] 3, Gye 7hF : (@) —@ Treated as part of cost of good production(1) because they are an unavoidable cost of production (1) nooneal loiter Gee abated | Youd Prodan che. : (i) Sales'value credited to process account(1) to reduce cost of main ora / Provera) ey ‘ 2) cd DE Lng Pur ‘Total for the question 25 marks De. sep vat. ca fimermentre