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TYSON CO

The following financial statements and supporting information relate to Tyson Co, a limited liability entity:

Statement of profit or loss and other comprehensive income for the year ended 30 September 20X9

 

$000

Revenue

 

100,650

Less: Cost of sales

Gross profit

 

69,050

31,600

Less: Distribution costs

 

4,000

Less: Administration expenses

 

1,800

Add: Profit on disposal of plant and equipment

 

900

Less: Interest payable

Profit before tax

 

1,500

25,200

Less: Income tax expense

Profit for the year

 

4,000

21,200

Other comprehensive income:

Revaluation surplus on property, plant and equipment

 

 

4,000

Total comprehensive income for the year

 


25,200

 

Statement of financial position at 30 September20X9:

 

 

ASSETS

20X9

$000

20X8

$000

Non‐current assets

Property, plant and equipment

 

89,000

 

78,000

Current assets

Inventories

 

29,500

 

25,000

Trade receivables

36,400

54,000

Cash and equivalents

 

5,000

Nil

 

 

––––––

––––––

Total assets

159,900

 

157,000

 

 

––––––

––––––


 

EQUITY AND LIABILITIES

20X9

$000

20X8

$000

Equity share capital

80,000

32,000

Share premium

10,000

7,000

Revaluation surplus

4,000

Nil

Retained earnings

30,450

49,500

 

–––––––

–––––––

Total equity

124,450

88,500

Non‐current liabilities

 

 

10% Debenture

20,000

15,000

Current liabilities

 

 

Bank overdraft

Nil

5,000

Trade payables

11,000

41,800

Income tax

3,500

6,000

Accrued interest

950

700

 

–––––––

–––––––

Total equity and liabilities

159,900

157,000

 

–––––––

–––––––



The following information is relevant to the financial statements of Tyson Co during the year ended 30 September 20X9

  1. Tyson Co disposed of some items of plant and equipment for sale proceeds of $1,500,000. The carrying amount of the items disposed of was $1,000,000.
  2. Tyson Co purchased property plant and equipment at a cost of $29,000,000. In addition, land and buildings were revalued during the year.
  3. Tyson Co estimated that the income tax liability arising on the profit for the year was $4,900,000.

Required:

Using the information available, complete the statement of cash flows using the indirect method for Tyson Co for the year ended 30 September 20X9 in accordance with the requirements of IAS 7 Statement of cashflows.

Provide the final answer

A. Dividend paid:
Select the correct calculation of dividend paid in the year:
B. Select the correct calculation of interest paid (allfiguresin$000):

Tyson Co – Statement of cash flows for the year ended 30 September 20X9

 

$000

 

Cashflows from operating activities

 

 

Profit before tax / Total comprehensive income*Adjustments for:

 

 

Depreciation charge

 

Add/Subtract*

Profit on sale of plant and equipment

 

Add/Subtract*

Interest payable

 

Add/ Subtract*

Change in inventories

 

Add/Subtract*

Change in trade receivables

 

Add/Subtract*

Change in trade payables

 

Add/ Subtract*

 

    –––––––

 

Cash generated from operations

N/A

 

Interest paid

Item1

Add/ Subtract*

Income taxes paid

 

Add/ Subtract*

 

–––––––

 

Net cash from operating activities

N/A

 

 

 

 

Cashflows from investing activities

 

 

Cash purchase of property, plant and equipment

 

Add/Subtract*

Disposal proceeds of plant and equipment

 

Add/Subtract*

 

–––––––

 

Net cash from investing activities

N/A

 

 

 

 

Cashflows from financing activities

 

 

Proceeds of loan raised

 

Add/Subtract*

Proceeds of share issue

 

Add/Subtract*

Dividend paid

Item2

Add/ Subtract*

Net cash from financing activities      N/A

 

 

Net change in cash and equivalents for the year Decrease / Increase*

 

 

Cash and cash equivalents b/f

 

Add/ Subtract*

 

 

 

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