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350 73 Statement of profit or loss for the year ended 31 December, 2016 GHc000 Revenue 900 Cost of sales (550) Gross profit Expenses (245)

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350 73 Statement of profit or loss for the year ended 31 December, 2016 GHc000 Revenue 900 Cost of sales (550) Gross profit Expenses (245) Finance costs (9) Profit on sale of equipment 1 Profit before tax 103 Income tax expense (30) Profit for the period Additional information: i Deferred development expenditure amortized during 2016 was GH 25,000. ii. Additions to property, plant and equipment totalling GHe 167,000 were made. Proceeds from the sale of equipment were GH458,000, giving rise to a profit of GH7,000. No other items of property, plant and equipment were disposed of during the year. ni Finance costs represent interest paid on the new 6% debentures (2016-2022) issued on! January 2016 Current asset investments represent treasury hills acquired. The company deems these to represent cash equivalents. v. Dividends poil during the year amounted to GH465,000. Required: Prepare a statement of cash flow for Sansa Company for the year ended 31 December 2016, using the indirect method in accordance with LAS 7: Statement of Cash Flows. iv. O Question 3 Below are the statement of financial position for Sansa Company Limited at 31 December 2015 and 31 December 2016 and the income statement for the year ended 31 December, 2016 2016 2015 GH000 GH000 ASSETS Non-current assen: Property, plant and equipment 528 447 Development costs 110 93 638 540 Current asses: Inventories 413 380 Trade receivables 238 215 Investments 28 Cash 111 790 599 TOTAL ASSETS 1.428 1.139 EQUITY AND LIABILITIES Equity : | GHe ordinary shares 240 200 Capital surplus 140 120 Revaluation plus 100 Retained earnings 538 $30 1,018 850 Non-current liabilities: Provision for warranties 30 25 69. debeatures 150 180 Current liabilities: Income tax payable 37 Trade payables 192 230 264 TOTAL EQUITY AND LIABILITIES 1.428 1.1.39

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