a) Calculate the non-current asset additions for the year{Hint: you will need to complete a T account to reconcile the movement in the net bookvalue of the non-current asset balance. The additions will be the unexplained movement}b) Prepare the operating activities and investing activities sections of the Statement of cashflows for the year ended 30 June 2021 c) Using your answer to part b) comment on the quality of the business’s profits Question 2The following are extracts from the financial statements of CrocusExtracts from the Statement of profit or loss for the year ending 30 June 2021£000Operating profit13,480Investment income320Interest expense(2,150)Profit before tax11,650Тах(2,900)Profit for the year8,750Extracts from the Statement of financial position as at 30 June 2021£000£000Non-current assets(at Net book value)73,00070,500Current assetsInventories27,50025,500Trade receivables37,50033,000Cash4,2501,250Page 3 of 8Current liabilitiosTrade payables29,45031,900Accrued expenses2,9002,310 Notes:1. During the year Crocus sold some of its non-current assets for £1,100,000. The net bookvalue of these items at the date of disposal was £800,000. The depreciation charge forthe year was £500,0002. Both interest and tax were paid in full in the year3. Investment income represents dividends received in the yeara) Calculate the non-current asset additions for the year(Hint: you will need to complete a T account to reconcile the movement in the net bookvalue of the non-current asset balance. The additions will be the unexplained movement)Non current assets at NBVB/fwdC/fwdb) Prepare the operating activities and investing activities sections of the Statement of cashflows for the year ended 30 June 2021c) Using your answer to part b) comment on the quality of the business's profits

(a) Non-Current Assets at NBV PARTICULARS AMT ('000) PARTICULARS AMT ('000) B B/FWD 70,500…

a) Calculate the non-current asset additions for the year {Hint: you will need to complete a T account to reconcile the movement in the net book value of the non-current asset balance. The additions will be the unexplained movement} b) Prepare the operating activities and investing activities sections of the Statement of cash flows for the year ended 30 June 2021 c) Using your answer to part b) comment on the quality of the business’s profits

a) Calculate the non-current asset additions for the year {Hint: you will need to complete a T account to reconcile the movement in the net book value of the non-current asset balance. The additions will be the unexplained movement} b) Prepare the operating activities and investing activities sections of the Statement of cash flows for the year ended 30 June 2021 c) Using your answer to part b) comment on the quality of the business’s profits

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 2RE: Refer to RE5-1. Prepare a single-step income statement for Brandt Corporation for the current year.

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