Flashy Ltd is involved in the manufacture of Ugg boots
Topic 2 – Business Combinations Flashy Ltd is involved in the manufacture of Ugg boots. The director wishes to sell the business to a long-standing competitor, Boots Ltd. The financial statements of Flashy Ltd at 1 July 2019 contained the following information: Assets Liabilities Current assets Liabilities Cash 7,500 Accounts payable 18,900 Accounts receivable 11,000 Other payables 41,000 Inventories 16,500 Provisions 27,000 Total current assets 35,000 Loans 63,000 Total liabilities 149,900 Non-current assets Equity Vehicles 32,000 Share capital: 50,000 shares 48,000 Accumulated depreciation -5,500 Retained earnings 47,800 Trucks 37,000 Total equity 95,800 Accumulated depreciation -6,300 Machinery 22,000 Accumulated depreciation -3,000 Buildings 49,000 Accumulated depreciation -4,500 Land 90,000 Total non-current assets 210,700 Total assets 245,700 Total liabilities and equity 245,700 An agreement was…
Details