cash flows

QUESTION TWO Barney is a publicly listed company. Details of its financial statements for the year ended 30 September 2016, together with a comparative statement of financial position, are: 30 September 2016 30 September 2015 Statement of financial position at K'000 K'000 K000 K 000 1,280 940 Non-current assets (note (i)) Property, plant and equipment Software 135 Nil 150 125 Investments at fair value through profit and loss 1,565' 1,065 Current assets Inventories Trade receivables Amounts due from construction contracts Bank 830 Total assets 2.395 Equity and liabilities Equity shares of 25 ngwee each 500 Reserves Share premium (note (iii)) 150 Revaluation reserve 60 Retained earnings 950 1,160 1,660 Non-current liabilities 9% loan note 120 Environmental provision 162 Deferred tax 18 300 Current liabilities 350 Trade payables Bank overdraft- Current tax payable 25 60 435 Total equity and liabilities 2,395 Statement of profit or loss for the year ended 30 September 2016 Revenue 1,397 Cost of sales (1,110) Gross profit Operating expenses 287 (125) 162 480 270 80 Nil 510 380 55 35 85 25 965 Nil 25 555 40 50 980 2,045 300 1,075 1,375 25 645 2,045 4 Finance costs (note (i)) (40) 20 widends Investment income and gain on investments (note (ii)) Profit before tax 142 # of Shores Income tax expense (57) Profit for the year 85 The following supporting information is available: (i) Included in property, plant and equipment is a coal mine and related plant that Barney purchased on 1 October 2015. Legislation requires that in ten years' time (the estimated life of the mine) Barney will have to landscape the area affected by the mining. The future cost of this has been estimated and discounted at a rate of 8% to a present value of K150,000. This cost has been capitalised, as it should be, and included in the carrying amount of the mine and has also been treated as a provision. The change in the provision is included within finance costs in the statement of profit or loss. Other land was revalued (upward) by K35,000 during the year. Depreciation of property, plant and equipment for the year was K255,000. There were no disposals of property, plant and equipment during the year. The software was purchased on 1 April 2016 for K180,000. (ii) The market value of the investments had increased during the year by K15,000. There have been no sales of these investments during the year. (iii) On 1 April 2016 there was a bonus (scrip) issue of equity shares of one for every four held utilising the share premium reserve. A further cash share issue was made on 1 June 2016. No shares were redeemed during the year. (iv) A dividend of 5 ngwee per share was paid on 1 July 2016. Required: Prepare a statement of cash flows for Barney for the year to 30 September 2016 in accordance with IAS 7 Statements of cash flows using the indirect method