Depay Co Case
Extracts from Depay’s financial statements for the year ended 30 September 20X2 are shown below.
Statement of profit or loss extract: $000
Finance costs (60)
Profit before tax 142
Income tax expense (57)
Profit for the year 85
Statement of financial position extract: 20X2 20X1
Retained earnings 900 940
5% loan notes 515 500
Deferred tax liability 150 125
Tax payable 30 40
Lease liabilities 300 310
The following information is relevant:
1. Depay disposed of some land during the year, which had a remaining revaluation surplus at disposal of $20,000.
2. $40,000 of the finance costs relate to the loan notes which are repayable at a premium, making the effective rate of interest 8%. The remaining interest relatesto the lease liabilities.
3. During the year, Depay received a dividend from a subsidiary.
4. Depay acquired $70,000 of new assets under lease agreements during the year. Depay makes annual payments under leases on 30 September each year.
1. What will be recorded in Depay’s statement of cash flows under dividends paid?
2. What will be recorded in Depay’s statement of cash flows under interest paid?
3. What will be recorded in Depay’s statement of cash flows under tax paid?$........................
4. Where should the dividend received be shown in Depay’s statement of cash flows?
5. How much should be shown within financing activities in respect of lease liabilities repaid?$........................