Camille Manufacturing Limited list of balances on December 31, 2015

$’000
Sales 727,911
Cost of sales 394,481
Distribution costs 70,262
Administrative costs 90,530
Other operating expenses 14,150
Redundancy costs 18,000
Other operating income 16,300
Finance costs paid 900
Corporation tax charge 42,678
Corporation tax under-provision 2,250
Deferred tax payable 6,280
Corporation tax payable 20,648
Property, plant and equipment 153,300
Accumulated depreciation 61,300
Long term receivables 3,650
Due from fellow subsidiary companies 1,325
Trade debtors 150,126
Allowance for bad debts 7,506
Other receivables and prepayments 4,188
Cash and bank deposits 66,722
Issued ordinary share capital 200,000
General reserve 2,000
Profit and Loss Account January 1, 2014 151,419
Long term loan 6,000
Due to immediate parent company 32,650
Trade creditors 66,230
Other payables and accruals 21,625
Ordinary dividends paid 30,000
Closing inventories 277,307

Additional information:
1. Current portion of long term receivable $1,000,000.

2. Current portion of long term loan $2,000,000.

3. Deferred tax is to be reduced by $1,280,000.

4. On January 29, 2016 the board of directors approved the financial statements for
issue, and a dividend of $0.05 per share in relation to the 2015 financial year. The
record date is February 5, 2016 and the payment date is February 26, 2016.
5. Stocks are valued at cost (FIFO method) or net realizable value, whichever is
lower.
Page 1
6. Allowance for bad debts is 5% of trade debtors.

7. Interest rate of 15% per annum is charged on the long term loan. No interest was
outstanding at the beginning or at the end of the financial year.

8. Corporation tax is at the rate of 33 1/3 %. Capital allowances amounted to

$57,869,000 and disallowed expenses amounted to $30,015,000.

9. Issued share capital on January 1, 2015, and on December 31, 2015:

100,000,000 ordinary shares

10. Authorized share capital : 500,000,000 ordinary shares

11. The company prepares its financial statements under the historical cost
convention.

12. The company is incorporated in Jamaica. The company manufactures cheese. The
company is a 70% subsidiary of Antonio Limited which is incorporated in
Trinidad and Tobago.

13. All finance costs were paid during the financial year.

14. Property, plant and equipment

Cost Accumulated Charge
1/1/15 Depreciation for the
1/1/15 year
$’000 $’000 $’000
Land 8,920
Buildings 41,000 2,970 1,025
Plant & machinery 32,200 12,880 6,440
Furniture, fixtures & equipment 9,200 7,165 1,740
Motor vehicles 60,000 17,480 12,000

During the year equipment acquired amounted to $2,480,000 and

equipment costing $500,000 with accumulated depreciation of $400,000
was disposed of for $150,000.

Depreciation is calculated on the straight line basis at the following rates:

Buildings 2½%
Plant & machinery 20%
Furniture, fixtures & equipment 10% - 20%
Motor vehicles 20%

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 15. Significant transactions with group companies: $’000
Sales 1,286
Purchases 51,260

16. Staff costs: $’000

Salaries and wages 78,608
Statutory deductions 6,555
Pension cost (defined contribution plan) 2,724
Other benefits 14,265

17. The average number of employees during the year :

108 full time
26 part time

18. Other relevant data: $’000

Directors’ emoluments
Fees 42
Management 5,665
Audit fees 1,108

19. Closing inventories $’000

Finished goods 63,780
Work in progress 2,700
Raw materials and supplies 124,787
Goods in transit 86,040

Required:

a. Prepare the Statement of Comprehensive Income for the year ended December 31,
2015.

b. Prepare the Statement of Changes in Equity for the year ended December 31,
2015.

c. Prepare the Statement of Financial Position as at December 31, 2015.

Comparative figures are required.

d. Prepare the Statement of Cash Flows for the year ended December 31, 2015.

e. Prepare the Notes to the Financial Statements for the year ended December 31,
2015.

Financial statements should be prepared in accordance with international financial

reporting standards for publication.
Page 3
Camille Manufacturing Limited Balance Sheet as at December 31, 2014

$’000
Assets
Non-Current Assets
Property, Plant & Equipment 110,825
Long term receivable 3,650
Total non-current assets 114,475

Current Assets
Due from fellow subsidiary companies 1,271
Inventories 265,206
Trade debtors 161,735
Current portion of long
term receivable 1,000
Other receivables and prepayment 2,812
Cash and bank deposits 52,777
Total current assets 484,801

Total assets 599,276

======

Equity and Liabilities

Shareholders’ Equity
Share capital 200,000
General reserve 2,000
Profit and Loss Account 151,419
Total equity 353,419

Non-Current Liabilities
Long term loan 6,000
Deferred tax payable 6,280
Total non-current liabilities 12,280

Current Liabilities
Due to immediate parent company 44,718
Trade creditors 151,237
Other payables and accruals 16,500
Corporation tax payable 19,122
Current portion of long term loan 2,000
Total current liabilities 233,577

Total liabilities 245,857

Total equity and liabilities 599,276