Case Stimulus
The following financial statements were extracted from the 2021 annual report and accounts recently published by Odibeze Nigeria PLC.
Statement of profit or loss and other comprehensive income for the year ended April 30, 2021
N’000
Revenue 849,940
Cost of sales (564,200)
Gross profit 285,740
Investment income 18,000
Operating expenses (192,400)
Finance costs (26,000)
Profit before taxation 85,340
Income tax expense (28,340)
Profit for the year 57,000
Other comprehensive income:
Gain on revaluation of property 15,000
Total comprehensive income 72,000
Statement of financial position as at April 30, 2021
2021 2020
Non-current assets: N’000 N’000
Freehold properties 350,000 385,000
Plant and machinery 220,000 242,000
Trade investments 120,000 88,000
Goodwill - 38,500
Current assets:
Inventories 325,700 265,000
Trade receivable 203,050 190,000
Cash and bank 64,000 10,200
1,282,750 1,218,700
Equity and liabilities: N’000 N’000
Ordinary shares of N1.20k each 120,000 72,000
Share premium 21,000 -
Revaluation reserves 15,000 5,000
Retained earnings 679,000 654,000
Non-current liabilities:
8½% Redeemable preference shares 32,000 -
Current liabilities:
Trade payables 260,500 350,200
Taxation 65,200 107,400
Bank overdraft 90,050 30,100
1,282,750 1,218,700
Additional information
(i) During the financial year the company made a bonus issue of one share for every six shares held and a cash issue at N1.90kobo per share to provide funds for its anticipated expansion.
(ii) It is the company’s policy to revalue its freehold properties annually with any resulting surplus transferred to revaluation reserves account. There was no disposal of freehold properties during the year.
(iii) A plant with a carrying amount of N20,000,000 was disposed on September 30, 2020 for N11,200,000 while the depreciation charge for the year on the remaining plant and machinery of N24,000,000 was included in the operating expenses.
(iv) The investment income represents interest received on the trade investment during the year. The trade investment suffered impairment loss of N10,000,000 by the year end.
(v) The company paid an interim dividend of N25,000,000 and proposed a final dividend of N45,000,000.