Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

Consult Source C in the insert.
(a)[15]

Prepare the revised statement of cash flows for the year ended 31 December 2022 in accordance with IAS 7.

(b(i))[3]

Discuss, without doing calculations, why earnings per share could decrease.

(b(ii))[2]

Discuss, without doing calculations, why the price earnings ratio could increase.

(b(iii))[2]

Discuss, without doing calculations, why dividend yield could decrease.

(c)[3]

Advise the directors on whether a further bonus issue would be beneficial. Justify your answer.

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