Case Stimulus
Badary PLC statement of financial position as at March 31, 2021
Assets: 31-03-21 31-03-20
Non-current assets: N'000 N'000
Property, plant and equipment 350,000 110,000
Investments 60,000 30,000
410,000 140,000
Current assets:
Inventories 295,000 120,000
Trade receivables 90,000 60,000
Bank 15,000 40,000
400,000 220,000
Total assets 810,000 360,000
Equity and liabilities
Ordinary share capital of 80 kobo per share 220,000 120,000
Share premium 60,000 30,000
Retained earnings 280,000 119,000
560,000 269,000
Non-current liabilities:
10% Redeemable loan notes 50,000 10,000
Current liabilities:
Trade payables 65,000 14,000
Taxation 70,000 12,000
Bank overdraft 25,000 5,000
Accrued expenses 40,000 50,000
200,000 81,000
Total liabilities 250,000 91,000
Total equity and liabilities 810,000 360,000
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Statement of profit or loss for the year ended March 31, 2021
N' 000
Revenue 490,000
Cost of sales (222,000)
Gross profit 268,000
Administrative expenses (90,000)
Distribution cost (40,000)
Finance cost (5,000)
Dividend received 153,500
18,500
Profit before taxation 286,500
Income tax expense (70,000)
Profit for the year 216,500
Additional Information
i. During the year ended March 31, 2021 plant and equipment with a carrying amount of N40,000,000 was sold for N55,000,000. The profit or loss on disposal was charged to distribution expenses.
(ii) Dividend of 2 kobo per share was paid in the year ended March 31, 2021 and there were also bonus issues.
(iii) Depreciation charged for the year was N10,000,000 on furniture and N30,000,000 on plant and equipment.
(iv) During the year, an investment which cost N12,500,000 some years ago was disposed for N20,000,000. The profit or loss on disposal was charged to administrative expenses.
(v) Dividends received were from investment in shares and immediate disposal of rights issue from the investment in shares in a blue-chip company.