Statement of Cash Flows Questions and Answers

Medals Limited's machinery had accumulated depreciation of $340 000 at the start of the year and $450 000 at the end of the year, with no machinery disposed of during the year. What was the depreciation charge on machinery for the year ended 31 December 2018?

Medals Limited sold vehicles that had originally cost $75 000 for $12 000. The accumulated depreciation on these vehicles at the date of sale was $58 000. What was the loss on disposal of the vehicles?

Medals Limited sold buildings that had originally cost $240 000 for $320 000, realising a profit on disposal of $101 000. What was the net book value of the buildings at the date of sale?

Medals Limited's inventory was $400 000 at 31 December 2017 and $470 000 at 31 December 2018. What was the increase in inventory during the year, as used in preparing the statement of cash flows?

Which of the following is a genuine benefit of preparing a statement of cash flows, in addition to the income statement and statement of financial position?

A company had 300 000 ordinary shares of $1 each in issue at the start of the year. In January it made a bonus issue of one ordinary share for every five held, and in April it made a rights issue of one ordinary share for every four then held, fully subscribed at $1.50 per share. Calculate the cash raised by the rights issue.

The Quartet made no disposals of plant and equipment during the year ended 31 December 2005. Calculate the depreciation charged on plant and equipment for that year. Give your answer in $ 000.