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A summarised comparative statement of financial position of Black Inc. is presented below: 31 Dec 2016 31 Dec 2017 Cash $25 000 $45 000 Trade

A summarised comparative statement of financial position of Black Inc. is presented below:

31 Dec 2016

31 Dec 2017

Cash

$25 000

$45 000

Trade receivables

50 000

65 000

Investments in financial assets

40 000

50 000

Plant

130 000

180 000

Accumulated depreciation

(45 000)

(60 000)

$200 000

$280 000

Trade accounts payable

$6 000

$4 000

Interest payable

7 000

Current tax payable

20 000

28 000

Deferred tax liability

-

3 000

Borrowings

40 000

10 000

Share capital

100 000

130 000

Retained earnings

27 000

105 000

$200 000

$280 000

Additional information

  1. There were no disposals of plant during the year.
  2. There were no purchases or sales of investments in financial assets during the year. Gains and losses on changes in the fair value of investments in financial assets are recognised in profit or loss.
  3. Black Inc. settled a loan (borrowings) of $30 000 by issuing ordinary shares. There were no other repayments of borrowings.
  4. Profit for the year was $101 000, interest expense was $14 000, and income tax expense was $31 000. There were no items of other comprehensive income.
  5. A $23 000 dividend was paid during the year.
  6. Service revenue for the year was $300 000. There was no other revenue.
  7. Black Inc. classifies interest as an operating activity.

Required :

Using the indirect method of presenting cash flows from operating activities, statement of cash flows in accordance with IAS 7 for the year ended 31 December 2017.

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