Investment property -cash flow

Hello Sir,
Can you please clarify the calculation of the investment property income in cash flow ,how we include the investment income in cash flow (is it cash ) ,
with regard to the following question. It is a bit confusing is it a purchase of property .I am confused about the 60-20 how they are adjusted and what their meaning .Yes there is an increase in the investment property of 40m during the year.

Thanks Sir.

Q 291

Pinto Co – OTQ case 18 mins
The following scenario relates to questions 290–294.
Pinto Co is a publicly listed company. The following financial statements of Pinto Co are available:
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR YEAR ENDED 31 MARCH 20X8
(extract)
$’000
Profit before tax 440
Income tax expense (160)
Profit for the year 280
Other comprehensive income
Gains on property revaluation 100
Total comprehensive income 380
STATEMENTS OF FINANCIAL POSITION (extracts) AS AT
31 March 20X8 31 March 20X7
$’000 $’000 $’000 $’000
Non-current assets (note (i))
Property, plant and equipment 2,880 1,860
Investment property 420 400
3,300 2,260
Non-current liabilities
Deferred tax 50 50 30 430
Current liabilities
Trade payables 1,610 1,270
Current tax payable 150 1,760 nil 1,270
Total equity and liabilities 5,000 3,660
The following supporting information is available:
(i) An item of plant with a carrying amount of $240,000 was sold at a loss of $90,000 during the year.
Depreciation of $280,000 was charged (to cost of sales) for property, plant and equipment in the year ended
31 March 20X8.
Pinto Co uses the fair value model in IAS 40 Investment Property. There were no purchases or sales of
investment property during the year.
(ii) A dividend of 3 cents per share was paid on 1 January 20X8. Pinto Co has $1 million of 20 cent equity
shares at 31 March 20X7 and 31 March 20X8.
(iii) $60,000 was included in Pinto’s profit before tax for the year ended 31 March 20X8 in respect of income and
gains on investment property.
You are preparing a statement of cash flows for Pinto Co for the year to 31 March 20X8.

291 Pinto has spent $1,440,000 on purchase of plant. What is the net cash used in investing activities?

Answer
291 $1,250,000
$’000
Proceeds from sale of plant (240 – 90) 150
Purchase of plant (W) (1,440)
Investment property income (60 – 20) 40
1,250

Working
$’000
B/f 1,860
Revaluation gain 100
Disposal (240)
Depreciation (280)
Purchases (?) 1,440
2,880