5:07 & + all 87% Jane Limited.pdf .. . Section B - THREE questions ONLY to be attempted 3 The balance sheets of Jane, a limited liability company, at 31 December 1997 and 1998 were as follows: Reference Year ended 31 December to notes 1997 1998 Assets $000 $000 Non-current assets Property, plant and equipment 1,100 Investments at cost N 730 100 50 830 1,150 Current assets Inventory 80 110 Trade and other receivables 1 10 180 Cash 20 30 210 320 Total assets 1.040 1,470 Equity and liabilities Capital and reserves Issued capital w 300 380 Share premium 200 300 Revaluation reserve 100 200 Accumulated profits 200 190 1,070 Non-current liabilities 10% loan notes 5 100 150 Current liabilities Trade and other payables 70 80 Bank overdraft 40 130 Proposed dividend 6 30 40 140 250 Total equity and liabilities 1.040 1,470 O A[P.T.O. Notes Property, plant and equipment During the year tangible property, plant and equipment with a net book value of $80,000 were sold for $60,000. The depreciation charge for the year on all property, plant and equipment held at the end of the year was $100,000. 2 Investments Investments which cost $50,000 were sold during the year for $40,000. 3 Issued capital Jane's issued capital at 31 December 1997 consisted of 300,000 ordinary shares of $ 1 each. Another 80.000 shares were issued during the year at a price of $2 :25 per share. Revaluation reserve jane's property was revalued upwards by $100,000 during the year. 5 10% Loan notes $50.000 of 10% loan notes were issued on | January 1998. All interest to 31 December 1998 has been paid. 6 Proposed dividends The proposed dividends are on Jane's equity share capital. No interim dividends were paid. Required: Prepare Jane's cash flow statement for the year ended 31 December 1998 complying with IAS 7 Cash Flow Statements as far as possible. Ignore taxation. (20 marks) 2 / 2