a) Briefly explain the objectives and scope of IAS 7 (Cash Flow Statements). (6 marks) b) The following are extracts from the financial statements of Wewe Ltd. As at 31 March: 2019 2018 Sh.'000' Sh.'000' Sh.'000' Sh.'000' Non-Current assets: Goodwill Freehold land and building Plant and machinery (NBV) Investment at cost Current assets: Stocks Accounts receivable Investments Cash at hand and bank Current liabilities Bank overdraft Accounts payable Proposed dividends Taxation Net current assets 15% debentures Capital and reserves: Authorised, issued and paid Sh.10 Ordinary shares Share premium Revaluation reserve Retained profit 10,050 6,140 1,710 200 18,100 (2,390) (5,850) (450) (820) (9,510) 2,800 16,800 5,860 3,600 29,060 8,590 37,650 (7,500) 30,150 18,000 1,500 4,500 6,150 8,700 7,800 840 430 17,770 (6,540) (5,250) (380) (600) (12,770) 2,900 12,000 6,350 3,750 25,000 5,000 30,000 (9,000) 21,000 15,000 750 - 5,250 30,150 21,000 The profit and loss appropriation account for the year ended 31 March 2019 is given below: Sh.'000' Sh.'000' Net profit before tax Less: Corporation tax Profit after tax Dividends: Interim (paid) 150 2,400 900 1,500 Proposed (paid) 450 600 900 The following additional information is provided: 1. Profit for the year is arrived at after charging: Sh.'000' Depreciation on plant and machinery Goodwill amortization 1,150 420 2. During the year, plant with a net book value of Sh.750, 000 was sold for Sh.1, 470,000. The plant had originally cost Sh.3, 000,000. 3. The investments portfolio was reduced by selling one block of shares at a profit of sh.160,000. Required: Cash flow statement in accordance with IAS 7. (14 marks)