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