A summarized comparative statement of the financial position of XY Ltd is presented below, together with the statement of profit or loss for the year ended 31 December 2017:

Additional information:

(a) Plant additions amount to 60 000. The purchases were settled in cash. Plant with a carrying amount of 10 000 (cost 20 000, accumulated depreciation 10 000) was sold for 15 000. The proceeds from the sale of plant had not been received by 31 December 2017.

(b) Accounts payable is for purchase of inventory.

(c) Borrowings of 20 000 were repaid during the year.

(d) Dividends declared out of profit for the year were: interim dividend 20 000; final dividend 50 000.

(e) The increase in the share capital of 10 000 arose from the reinvestment of dividends.

(f) Interest is classified as operating activities.

Required:

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

Statement of Financial Position for the year ended 31 December 2017 31-Dec-16 31-Dec-17 Cash Trade receivables Inventory Plant (at cost) Accumulated depreciation 20,000 140,000 90,000 120,000 (50,000) 320,000 2,000 150,000 80,000 160,000 (55,000) 337,000 Accounts payable Accrued interest Current tax payable Dividend payable Borrowings Share capital Retained earnings 75,000 4,000 2,000 40,000 110,000 70,000 19,000 55,000 5,000 8,000 50,000 120,000 80,000 19,000 337,000 320,000 Statement of Profit or Loss for the year ended 31 December 2017 Sales Cost of sales Gross profit Depreciation expense Administrative expenses Interest expense Profit before tax 637,000 (450,000) 187,000 (30,000) (60,000) (7,000) 90,000 (20,000) 70,000 Income tax expense Profit of the year