3 FIREWORK CO The following financial statements and supporting information relate to Firework Co, a limited liability entity: Statement of profit or loss and other comprehensive income for the year ended 30 June 20X5 Revenue Cost of sales Gross profit Distribution costs Administration expenses Interest payable Profit before tax Income tax expense Profit for the year Other comprehensive income: Revaluation of property, plant and equipment Total comprehensive income for the year $000 113,250 (77,500) 35,750 (3,000) (1,000) (750) 31,000 (6,000) 25,000 2,000 27,000 177 Statement of financial position at 30 June: 20X5 20X4 $000 $000 ASSETS Non-current assets Property, plant and equipment 110,000 93,000 I Current assets Inventories 36,000 30,000 Trade receivables 40,000 35,000 Cash and equivalents Nil 10,000 Total assets 186,000 168,000 EQUITY AND LIABILITIES Equity share capital 20,000 15,000 Share premium 8,000 3,000 Revaluation surplus 10,000 8,000 Retained earnings 96,000 85,000 Total equity 134,000 111,000 Non-current liabilities Bank loan 7,000 17,000 Current liabilities Trade payables Income tax Bank overdraft 36,500 30,000 6,500 10,000 2,000 Nil Notes: The following information is relevant to the financial statements of Firework: (i) (ii) During the year ended 30 June 20X5, Firework Co disposed of several items of plant and equipment for sale proceeds of $8,000,000. The loss on disposal of $2,000,000 is included within cost of sales. The depreciation charge for the year was $15,000,000. Firework Co estimated that the income tax liability arising on the profit for the year ended 30 June 20X5 was $6,500,000. Required: Based upon the information available, complete the statement of cash flows for Firework Co for the year ended 30 June 20X5 in accordance with the requirements of IAS 7 Statement of cash flows. (Total: 15 marks)