BAF1201-FINANCIAL ACCOUNTING II CAT

DO ALL THE QUESTIONS

QUESTION ONE

The following are extracts from the financial statements of Wewe Ltd. As at 31 March:

	2018		2017
	Sh.000	Sh.000	Sh.000	Sh.000
Fixed 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 2018 is given below:

	Sh.000	Sh.000
Net profit before tax Less: Corporation tax Profit after tax Dividends: Interim (paid) Proposed (paid)	150 450	2,400 900 1,500 600
		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.