| Worked Example 5 (SFPs) | Unnamed: 1 | Unnamed: 2 | Unnamed: 3 | Unnamed: 4 | SOLUTION |
|---|---|---|---|---|---|
| Ingram PLC | |||||
| Income Statement and Appropriation Account for the year ended 31 December Year 3 | |||||
| £OOO | £OOO | £OOO | |||
| Gross Profit | 60 | ||||
| Less Expenses | |||||
| Admin Expenses | 4 | ||||
| Selling Expenses | 9 | ||||
| Debenture Interest | 2 | ||||
| Salaries | 10 | ||||
| Depreciation - Property | 2 | ||||
| Increase in BDP | 1 | 28 | |||
| Profit for the Year | 32 | ||||
| Add Unappropriated Profit | 6 | ||||
| 38 | |||||
| Less | |||||
| Interim Ordinary Dividend | 1 | ||||
| Final Ordinary Dividend | 1 | 2 | |||
| General Reserve | 4 | 6 | |||
| Unappropriated Profit | 32 | ||||
| Ingram PLC | |||||
| Statement of Financial Position as at 31 December Year 3 | |||||
| COST | DEPN | NBV | |||
| £OOO | £OOO | £OOO | |||
| Non-Current Assets | |||||
| Property | 55 | 10 | 45 | ||
| Intangible Assets: Preliminary Expenses | 5 | ||||
| 50 | |||||
| Investments | 0 | ||||
| 50 | |||||
| Current Assets | |||||
| Closing Inventory | 10 | ||||
| Trade Receivables | 10 | ||||
| Provision for Bad Debts | 2 | 8 | |||
| Cash and Cash Equivalents | 20 | ||||
| Administration Expenses Receivable | 1 | ||||
| 39 | |||||
| Current Liabilities | |||||
| Trade Payables | 5 | ||||
| Debenture Interest Payable | 1 | 6 | |||
| Working Equity | 33 | ||||
| Net Assets Employed | 83 | ||||
| Non-Current Liabilities | |||||
| Debentures | 10 | 10 | |||
| Net Assets | 73 | ||||
| EQUITY | |||||
| 20,000 £1 Ordinary Shares | 20 | 20 | |||
| Reserves | |||||
| Unappropriated Profit | 32 | ||||
| General Reserve | 7 | ||||
| Share Premium | 14 | 53 | |||
| 73 |