Solution 14.7 – The Clothing Company

 

Trading, P&L and Appropriation Account for year ended 30 September 2005

 

€'000

€'000

€'000

Sales

 

 

2,550.0

Opening stock

 

235.0

 

Purchases

 

1,790.0

 

Less closing stock

 

(375.0)

 

Cost of sales:

 

 

(1,650.0)

Gross profit

 

 

900.0

Add gains

 

 

 

 

 

 

 

Less Expenses

 

 

 

Administration

230

 

 

+ Accrual

30

 

 

- Prepayment

(22)

238.0

 

Distribution

160

 

 

+ Accrual

15

175.0

 

Directors remuneration

 

68.0

 

Annual depreciation - fittings 10% 0f 80,000

 

8.0

 

Annual depreciation - equipment 10% 0f 235,000

 

23.5

(512.5)

Net operating profit

 

 

387.5

Interest paid - trial balance

 

7.0

 

Interest due - note 10

 

11.0

(18.0)

Net profit before tax

 

 

369.5

Corporation tax due note 9

 

40.0

(40.0)

Net profit after interest and tax

 

 

329.5

Appropriations

 

 

 

Transfer to reserves - Note 8

 

 

(20.0)

Dividend policy

 

 

 

Interim ordinary dividend

 

0.0

 

Proposed final dividend

 

60.0

 

Preference dividend provision

 

25.0

(85.0)

Retained earnings current year

 

 

224.5

Retained earnings b/f

 

 

254.0

Retained earnings current c/f

 

 

478.5

 

Balance sheet as at 30 September 2005                                                    

 

€'000

€'000

€'000

 

Cost

Accum.

N.B.V

Fixed Assets

 

Deprec.

 

Property (€770,000 + €80,000)

850.0

 

850.0

Fittings

350.0

(278.0)

72.0

Equipment

  235.0

(215.5)

  19.5

 

1,435.0

(493.5)

941.5

Intangible Assets

 

 

 

Goodwill

 

 

350.0

  Investments

 

 

75.0

 

 

 

 

Current Assets

 

 

 

Stock

 

375.0

 

Debtors

 

305.0

 

Bank

 

144.0

 

Prepayment

 

  22.0

 

 

 

846.0

 

Current Liabilities

 

 

 

Creditors

138.0

 

 

Accrual admin

30.0

 

 

Accrual distribution

15.0

 

 

Debenture interest

11.0

 

 

Corporation tax

40.0

 

 

Preference share dividend

25.0

 

 

Ordinary share dividend

60.0

(319.0)

527.0

 

 

 

 

Long Term Liabilities

 

 

 

6% Debentures (€300,000 - €100,000)

 

 

(200.0)

 

 

 

1,693.5

 

 

 

 

Capital & Reserves

 

 

 

Ordinary share capital (€600,000 + €100,000)

 

 

700.0

Preference share capital

 

 

250.0

Share premium

 

 

75.0

Retained earnings

 

 

478.5

Revaluation reserve

 

 

80.0

General reserve (€90,000 + €20,000)

 

 

  110.0

 

 

 

1,693.5