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Solution for Additional Exercises - Fila Ltd

By:   •  November 6, 2018  •  Course Note  •  769 Words (4 Pages)  •  14 Views

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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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