EXAMPLE The following information has been extraded from the books of Kambes Limited for the year bb 31-12-18 STATEMENT OF PROFT OR LOSS FOR THE YEAR TO 31 DECEMBER 2017 2018 K000 K000 Profit before taxation 9,500 20,400 Tacation 3200) 15200) Profit after taxation 8,300 15200 Dividends Preference(Paid) Ordinary Interim (Paid) Final (Proposed) Retained Profit for the year (100) (1.000) (3.000) 2,200 (100) (2.000) (0.000) 7,100 STATEMENT OF FINANCIAL PERFORMANCE AS AT 31 DECEMBER 2017 2018 K'000 23,900 10.750 13.150 K000 NON CURRENT ASSETS Plant Machinery and Equipment at cost 17,600 Less accumulated depreciation 9.500 8.100 CURRENT ASSETS Inventory 5,000 Trade receivables 8,600 Prepayments 300 Cash at bank and in hand 800 -500 15.000 26,700 400 42.100 CURRENT LIABILITES 18.200 Bank overdraft Trade payables 10.000 6.000 800 Accruals 1,000 3.200 5,200 Taxation Dividend 3,000 8,000 13,000 38,400 9.600 16.850 SHARE CAPITAL Ordinary Shares of K1 each 10% Preference shares of K1 each Profit and Loss account 5,000 1,000 5,000 1,000 10,100 16.100 3,000 9,000 Loans 15% debentures 600 750 9.600 16850 Additional information (1) The directors of Kambeu Ltd are extremely concemed about the large bank overdraft as at 31-12-18. The directors attribute this mainly to the increase in trade receivables as a result of alleged poor credit control. (2) During the year to 31-12-18, Non Current assets originally costing K5,500,000 were sold for 1,000,000. The accumulated depreciation on these assets as at 31-12-18 was K3,800,000 Required: Prepare a cash flow statement for the year to 31-12-18 in accordance with the requirements of IAS 7 using indirect method. QUESTION The draft Income Statements for Mwamba Plc for the year ended 31-12-16 with comparatives is as follows