Solution for Additional Exercises - Fila Ltd
By: Star • November 6, 2018 • Course Note • 769 Words (4 Pages) • 814 Views
Solution for Additional Exercises:
FILA Ltd
Income Statement for year ending 31 December 2014
￡000 ￡000 ￡000
Revenue 2810
Cost of Sold
Opening Inventory 600
Purchases [net of discount received] 1680*1
2280
Closing stock 350
(1930)
Gross Profit 880
Expenses
Administration 217*2
Distribution 292*3
Depreciation 160
(669)
Other operating income ---
Profit on disposal of the old operation 800
Operating Profit 1011
Finance Income: Interest received 100
Finance Costs: Debenture Interest (160)
Profit on Ordinary Activity before Taxation 951
Corporation Tax (280)
Profit on Ordinary Activity after Taxation 671
Working Notes:
*1 Net Purchase=Purchase – Discount Received
=￡1800-￡120=￡1680
*2 Administration ￡200,000
Add: Other Payables ￡17,000
￡217,000
*3 Distribution ￡300,000
Less: Other Receivables ￡8,000
￡292,000
FILA Ltd
Statement of Financial Position as at 31 December 2014
￡000 ￡000 ￡000
Non-current assets
Tangible Fixed Assets:
Buildings 1590
Plan and Machinery 700
2290
Intangible Assets：Goodwill 380
Investment 1000 3670
Current assets
Inventory 350
Bank 650
Cash 100
Trade receivables 1700
Other receivables 8
2808
Total Assets 6478
Capital and Reserves
Ordinary Share Capital 1,000
Retained earnings 1941
Equity (See SOCE) 2941
Non-current Liabilities
Debentures 1600
Current Liabilities
Trade payables 1600
Other payables 17
Corporation Tax Due 280
Debenture Interest payable 40
1937
Total Equity and Liabilities 6478
FILA Ltd
Statement of Changes in Equity
Ordinary Share Capital Retained Earnings Total Equity
￡000 ￡000 ￡000
Balance at 1 Jan 2014 1,000 1290 2,290
Changes in Equity
Issue of share Capital _ _
Profit for year 671 671
Ordinary Dividends (20) (20)
Balance at 31 Dec 2014 1,000 1941 2941
Cash Budget for 6 months from
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