cash flow statement

EXAMPLE 19-08-2013 The following information relates to Scan, a limited liability company: Statement of financial positions at 30 September 2005 2004 $000 $000 $000 $000 Non-current assets 4,000 3,400 Current assets: Inventory 400 300 Receivables 350 310 Bank 100 150 ___ ___ 850 760 _____ _____ 4,850 4,160 _____ _____ Equity and Liabilities Equity Ordinary shares of $0.5 each 1,500 1,000 Share premium 110 100 Accumulated profits 1,990 1,910 ________ _______ 3,600 3,010 Non-current liabilities 10% Loan notes 600 500 Current liabilities: Payables 200 170 Declared dividend 200 180 Taxation 250 300 ___ ___ 650 650 ________ _______ 4,850 4,160 ________ _______ Extracts from the income statement and the statement of changes in equity for the year ended 30 September 2005 $000 $000 Profit before interest and tax 625 Interest payable (55) _____ Profit before tax 570 Taxation (250) _____ Profit after tax 320 Dividends: – Interim 40 – Final 200 _____ (240) _____ Retained profit 80 Accumulated profit balance b/f 1,910 _______ Accumulated profit balance c/f 1,990 _______ Notes 1 During the year, non-current assets costing $1,000,000 were purchased. 2 Non-current assets which had a net book value of $250,000 were sold for $280,000. 3 Interim dividends amounting to $40,000 were paid during the year. 4 There was no under/over provision of tax for either of the years. 5 $100,000 of loan notes were issued on 1 April 2005. All the interest was paid during the year. 6 The ordinary shares were issued on 1 January 2005. Required: (a) Prepare a Statement of cash flows in accordance with IAS 7 for Scan for the year ended 30 September 2005 using the indirect method. (17 marks) (b) W