statement of cashflow

QUESTION 1
The statements of financial position of Naledi Ltd for the past two years and the most recent statement of profit or loss are set out as follows:
Statement of comprehensive income for the year ended 31 October 2018P’000Continuing operationsRevenue22,400Cost of sales(12,320)Gross profit10,080Gain on the disposal of non-current assets224Distribution costs(4,714)Administrative expenses(2,240)Profit from operations3,350Finance costs – interest on loan(91)Profit before tax3,259Tax(1,344)Profit for the period from continuing operations1,915Naledi Limited
Further information
1. The total depreciation charge for the year was P3,545,000.
2. Property, plant and equipment costing P976,000 with accumulated depreciation of P355,000 was sold in the year at a profit of P224,000.
3. All sales and purchases were on credit. Other expenses were paid for in cash.
Required
a)
Prepare the statement of cash flows for Naledi Limited for the year ended 31 October 2018. (19 marks)
b)
Prepare the statement of changes in equity for Naledi Limited for the year ended 31 October 2018. (6 marks)
20182017AssetsP’000P’000Non-current assets 25,17124,100Property, plant and equipment25,17124,100Current assets7,0565,057Inventories3,6962,464Trade and other receivables3,3602,464Cash and cash equivalents0129Total assets32,22729,157Equity and LiabilitiesEquity27,99025,565Share capital2,2002,000Share premium800500Retained earnings24,99023,065Non-current liabilities1,300800Bank loan1,300800Current liabilities2,9372,792Trade and other payables1,2321,848Tax liability1,344944Bank overdraft3610Total liabilities4,2373,592Total Equity and Liabilities32,22729,157Naledi Limited Statement of financial position as at 31 October