a) make a statement of cash flows for the year ended 30 June 2019, as required by AASB 107 using the indirect method. (15 marks)

The income statement and the statement of financial statement for Stamford Limited is given as follows: Stamford Limited Income Statement for the year ended 30 June 2019 $'000 $'000 Sales 25,000 Less: Cost of sales (16,000) Gross Profit 9,000 Other expenses (2,500) Profit before interest and tax 6,500 Less : Interest (100) Profit before tax 6,400 Less : Tax (1,800) Profit after tax 4,600 Less : Ordinary dividends (1,500) Retained Profits for the year 3,100 Add : Retained earnings brought forward 2,000 Retained earnings carried forward 5,100Stamford Limited Statement of Financial Position as at 30 June 2019 Non-cu rrent asset at cost Less accumulated depreciation Current Assets Inventory Accounts receivable Cash at Bank Total Assets Non-current liabilities Debentures Current Liabilities Accounts payable Tax payable Dividends payable Net Assets Equity Ordinary Share Capital Retained Profits Note: There was no disposal of non-current assets during the year