21 Jun The draft financial statements of Hanford Ltd are given below:
The draft financial statements of Hanford Ltd are given below:
Balance sheet as at 31 December
2002 2001
$'000 $'000 $'000 $'000
Non-current assets
Property, plant & equipment 5,670 5,490
(net)
Intangible assets
Goodwill 540 6,210 600 6,090
Current assets
Inventories 8,260 6,820
Trade and other receivables 6,465 5,260
Provision for bad debts (240) (160)
Cash at bank 210 14,695 30 11,950
Current liabilities
Trade and other payable 3,625 3,190
Bank overdraft 85 425
Interest payable 45 15
Tax payable 390 (4,145) 480 (4,110)
Net current assets 10,550 7,840
Total assets less current liabilities 16,760 13,930
Non-current liabilities
10% note payable 900 300
Government grant 780 900
Plant maintenance provision – (1,680) 80 (1,280)
Net assets 15,080 12,650
Capital and reserves
Issued capital,
Ordinary Shares of $1 each 2,250 1,500
Reserves
Share premium 1,050 300
Revaluation 450 –
Accumulated profits 11,320 12,830 10,850 11,150
15,080 12,650
Income Statement for the Year Ended 31 December 2002
$'000 $'000
Turnover 11,460
Cost of sales (7,860)
Gross profit 3,600
Operating expenses
Depreciation 960
Amortisation of goodwill 60
Interest expense 90 (1,110)
Profit before tax 2,490
Taxation (810)
Profit after tax 1,680
Dividends 1,200
The following information is available:
(1) Cost of sales includes a loss on sale of plant of $150,000, and a credit for the amortisation of government grants.
(2) The plant maintenance provision was released to the income statement in the year to 31 December 2002 as these provisions are no longer required, following the company’s change of accounting policy to account for maintenance costs on an actual incurred basis.
(3) The company revalued its buildings by $600,000 on 1 September 2002. The surplus was credited to a revaluation reserve.
(4) New plant was acquired during the year at a cost of $750,000 and a government grant of $150,000 was received for the plant. The remaining movement on property, plant and equipment was due to the disposal of obsolete plant.
(5) On 1 July 2002 a bonus issue of 1 new share for every 10 held was made from the revaluation reserve. In addition to the bonus issue, the company made a further issue of ordinary shares for cash.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.