[F7]每日一练F7 (UK) 答案回复可见

3 Pinto is a publicly listed company. The following financial statements of Pinto are available:
Profit and loss account for the year ended 31 March 2008 £’000
Turnover 5,740
Cost of sales (4,840)
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Gross profit 900
Distribution costs (120)
Administrative expenses (note (ii)) (350)
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Operating profit 430
Income from and gains on investment property 60
Finance costs (50)
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Profit before tax 440
Tax (160)
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Profit for the year 280
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Balance sheets as at 31 March 2008 31 March 2007
£’000 £’000 £’000 £’000
Fixed assets
Tangible assets (note (i)) 2,880 1,860
Investment property 420 400
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3,300 2,260
Current assets
Stock 1,210 810
Debtors 480 540
Tax asset nil 50
Bank 10 nil
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1,700 1,400
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Creditors: amounts falling due within one year
Bank overdraft nil 120
Creditors 1,410 1,050
Warranty provision (note (iv)) 200 100
Taxation 150 nil
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(1,760) (1,270)
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Net current assets (liabilities) (60) 130
Creditors: amounts falling due after more than one year
6% loan notes (note (ii)) nil (400)
Provisions for liabilities
Deferred tax (50) (30)
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3,190 1,960
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Capital and reserves
Equity shares of 20 pence each (note (iii)) 1,000 600
Share premium 600 nil
Revaluation reserve (note (i)) 150 50
Profit and loss account 1,440 2,190 1,310 1,360
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3,190 1,960
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The following supporting information is available:
(i) The increase in the revaluation reserve is attributable to a revaluation of Pinto’s property during the year.
An item of plant with a carrying amount of £240,000 was sold at a loss of £90,000 during the year. Depreciation
of £280,000 was charged (to cost of sales) for tangible fixed assets the year ended 31 March 2008.
There were no purchases or sales of investment property during the year.
(ii) The 6% loan notes were redeemed early incurring a penalty payment of £20,000 which has been charged as
an administrative expense in the profit and loss account.
(iii) There was an issue of shares for cash on 1 October 2007. There were no bonus issues of shares during the year.
(iv) Pinto gives a 12 month warranty on some of the products it sells. The amounts shown as warranty provision are
an accurate assessment, based on past experience, of the amount of claims likely to be made in respect of
warranties outstanding at each year end. Warranty costs are included in cost of sales.
(v) A dividend of 3 pence per share was paid on 1 January 2008.
Required:
(a) Prepare a cash flow statement for Pinto for the year to 31 March 2008 in accordance with FRS 1 Cash Flow
Statements. (15 marks)
(b) Comment on the cash flow management of Pinto as revealed by the cash flow statement and the information
provided by the above financial statements.
Note: ratio analysis is not required, and will not be awarded any marks.
(10 marks)
(25 marks)