Ex.1								Ex.2													
P/L				BS				P/L				BS				CE					
	Revenue	" 1,300 "			PPE	 182 			Revenue	" 2,165 "			PPE	 706 			Share capital	Share premium	Revaluation surplus	Retained earings	Total
	COS	 (388)			Stock	 250 			COS	" (1,389)"			Stock	 85 		b/f balance	 270 	 80 	 20 	 235 	 605 
	Gross profit	 912 			AR	 728 			Gross profit	 776 			AR	 3 		Total profit for the year			 100 	 57 	 157 
					Bank	 9 							Bank	 233 		Dividends				 (27)	 (27)
	Distribution costs	 (246)			Total assets	" 1,169 "			Distribution costs	 (250)			Total assets	" 1,027 "		c/f balance	 270 	 80 	 120 	 265 	 735 
	Administration costs	 (161)							Administration costs	 (295)											
	Operating profit	 505 			Share capital	 200 			Operating profit	 231 			Share capital	 350 							
					Retained earnings	 616 							Retained earnings	 265 							
	Interest paid	 (8)			LT loan	 80 			Fin result	 (9)			Revaluation reserve	 120 							
	Profit before tax	 497 			Warranties	 75 			Profit before tax	 222 			LT loan	 100 							
					AP	 60 							AP	 27 							
	Income tax expense	 (145)			Tax liability	 138 			Income tax expense	 (165)			Tax liability	 165 							
	Profit for the year	 352 			Total equity and liabilities	" 1,169 "			Profit for the year	 57 			Total equity and liabilities	" 1,027 "							
																					
									Other comprehensive profit (Revaluation surplus)	100											
																					
	building	 5 							Total profit for the year	 157 											
	plant	 25 																			
	total depreciation charge for the year	 30 																			
																					
	apportioned costs																				
	COS	60%	 18 																		
	Distribution costs	20%	 6 																		
	Administration costs	20%	 6 																		
			 30 																		
##### Sheet/List 2 #####
	Profit before tax	" 50,000 "				
						
Adjustments for non-cash items						
	Depreciation	" 14,000 "				
	Interest expense	" 2,000 "				
						
Working capital changes						
	Change in inventory	" (5,000)"				
	Change in AR	" (8,000)"				
	Change in AP	" (6,000)"				
						
Cash generated from operations		" 47,000 "				
						
	Interest expense	" (2,000)"				
	Tax expense	" (6,000)"				
						
Cash flow from operating activities		" 39,000 "				
						
	Purchase of PPE	" (40,000)"				
						
Cash flow from investing activities		" (40,000)"				
						
	Issue of new shares	" 20,000 "				
	Share premium on issue of new shares	" 2,000 "				
	Repayment of bank loan	" (10,000)"			Cash b/f	" 3,000 "
	Tax liability for 2015	" 2,000 "			Cash flow for the year (i.e. cash movement)	" 13,000 "
					Cash c/f	" 16,000 "
Cash flow from financing activities		" 14,000 "			check	 -