At 1 April 2018, the property, plant and equipment (PPE) of Tarracina Limited had a carrying value of £676,419. During the year ended 31 March 2019, depreciation of £174,220 was charged on PPE and the company sold various items of PPE with a carrying amount of £20,114 at the date of disposal. At 31 March 2019, the PPE had a carrying amount of £720,333. At 1 April 2018 and 31 March 2019, trade payables for purchases of PPE amounted to £48,721 and £55,993 respectively.
Based on this information, what figure for cash payments to acquire property, plant and equipment will appear in the statement of cash flows of Tarracina Limited for the financial year ended 31 March 2019?

Question

Quizplus · Accepted Answer

The cash payments to acquire property, plant and equipment is calculated as follows:Opening trade payables for purchases of PPE £48,721Add: Depreciation on PPE £174,220Less: Closing trade payables for purchases of PPE £55,993Less: Proceeds from sale of PPE £20,114Cash payments to acquire property, plant and equipment £230,976

At 1 April 2018, the Property, Plant and Equipment (PPE)