The summarised statement of comprehensive income of Scharp Ltd for the year to 30 June 2018 is shown below, together with the company's statement of financial position at that date (with comparatives for the previous year).

Statement of comprehensive income for the year to 30 June 2018.

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Operating profit......................... ?170,200Investment income......................... 7,100Interest payable............................ (6,120)? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ????????Profit before taxation................. 171,180Taxation......................................... 37,870? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ????????Profit for the year........................ 133,310? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ???????

Other comprehensive income was ?nil.

Statement of financial position at 30 June 2018.

(i) There were no disposals of non-current assets during the year to 30 June 2018.

(ii) A dividend of ?85,000 was paid during the year.

Required:

(a) Prepare a statement of cash flows for the year to 30 June 2018 in accordance with the requirements of IAS7 (using the indirect method).

(b) Explain why the information provided in the statement of comprehensive income and in the statements of financial position is insufficient to allow use of the direct method in this case.

(c) Comment briefly on the significance of the information provided by the company's statement of cash flows.

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2018 2017 Assets Non-current assets 369,300 151,650 217,650 210,000 Property, plant and equ't at cost Less: Accumulated depreciation 107,340 102,660 Investments at cost 120,000 120,000 337,650 222,660 Current assets 86,220 82,610 Inventories 97,430 58,100 Trade receivables Prepaid expenses 7,200 176,030 7,000 162,530 513,680 385,190 Equity Ordinary share capital Retained eamings 120,000 100,000 195,850 147,540 247,540 315,850 Liabilities Non-current liabilities 50,000 Debenture loans 75,000 Current liabilities Trade payables Accrued expenses 40,920 44,310 9,130 8,250 37,870 34,910 122,830 Тахation 32,300 Bank overdraft 2,790 87,650 513,680 385,190