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    Cash Flows of Avon LTD C1Lf75UDUz

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    Chickoo
    Avon Ltd's cash flows for the year can be determined from the indirect method using the balance sheet and income statement. Key calculations include: 1) Income taxes paid of Rs. 1,400 based on the income tax expense, 2) Net purchase of equipment of Rs. 42,000 calculated from the change in equipment balances, 3) Net sale of investments of Rs. 2,400 from the change in non-current investment balances, and 4) Dividends paid of Rs. 30,000 calculated from the change in share capital and reserves.

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    Cash Flows of Avon LTD C1Lf75UDUz

    Uploaded by

    Chickoo
    175 views1 page
    Avon Ltd's cash flows for the year can be determined from the indirect method using the balance sheet and income statement. Key calculations include: 1) Income taxes paid of Rs. 1,400 based on the income tax expense, 2) Net purchase of equipment of Rs. 42,000 calculated from the change in equipment balances, 3) Net sale of investments of Rs. 2,400 from the change in non-current investment balances, and 4) Dividends paid of Rs. 30,000 calculated from the change in share capital and reserves.

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    Avon Ltd's cash flows for the year can be determined from the indirect method using the balance sheet and income statement. Key calculations include: 1) Income taxes paid of Rs. 1,400 based on the income tax expense, 2) Net purchase of equipment of Rs. 42,000 calculated from the change in equipment balances, 3) Net sale of investments of Rs. 2,400 from the change in non-current investment balances, and 4) Dividends paid of Rs. 30,000 calculated from the change in share capital and reserves.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    175 views1 page

    Cash Flows of Avon LTD C1Lf75UDUz

    Uploaded by

    Chickoo
    Avon Ltd's cash flows for the year can be determined from the indirect method using the balance sheet and income statement. Key calculations include: 1) Income taxes paid of Rs. 1,400 based on the income tax expense, 2) Net purchase of equipment of Rs. 42,000 calculated from the change in equipment balances, 3) Net sale of investments of Rs. 2,400 from the change in non-current investment balances, and 4) Dividends paid of Rs. 30,000 calculated from the change in share capital and reserves.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Cash Flows of Avon Ltd.

    Prepare the cash flows of Avon Ltd. by indirect method based on the Balance Sheet and Income
    Statement provided below. Please show the workings for 1. Income taxes paid 2. Net purchase/sale
    of equipment, 3. Net purchase/sale of investments 4. Dividends paid
    Balance Sheet Rs
    31st March 2019 31st March 2018
    Equipment 1,43,000 1,01,000
    Less: Accumulated depreciation -20,600 -13,600
    Equipment, net 1,22,400 87,400
    Non-current investments 23,000 25,400
    Total non-current assets 1,45,400 1,12,800

    Inventory 28,800 22,000


    Accounts receivable 9,400 11,000
    Cash 9,200 3,000
    Prepaid expenses 200 1,000
    Total current assets 47,600 37,000
    TOTAL ASSETS 1,93,000 1,49,800

    Share Capital 93,000 63,000


    Reserves and surplus 28,000 26,400
    Total equity 1,21,000 89,400

    Bonds 59,000 49,000

    Accounts payable 10,000 8,600


    Accrued liabilities 2,400 1,800
    Income taxes payable 600 1,000
    Total current liabilities 13,000 11,400
    TOTAL EQUITY AND LIABILITIES 1,93,000 1,49,800

    Statement of Profit and Loss Rs


    Revenue from operations 1,39,600
    Interest income received 1,200
    Gain on sale of investments 2,400
    Loss on sale of equipment -600
    Total income 1,42,600

    Cost of Goods Sold 1,04,000


    Operating Expenses 29,400
    (including Depreciation Expense of Rs. 7,400)
    Interest expense 4,600
    Total expenses 1,38,000

    Profit before tax 4,600


    Income tax 1,400
    PROFIT AFTER TAX 3,200

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