IPEH Ltd is a wholesaler and retailer of office furniture. Extracts from the companys financial statements are set out below:

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR

THE YEAR ENDED:

31 March 2019

31 March 2018

GHS000

GHS000

GHS000

GHS000

Revenue: - cash

12,800

26,500

- credit

53,000

65,800

28,500

55,000

Cost of sales

(43,800)

(33,000)

Gross profit

22,000

22,000

Operating expenses

(11,200)

(6,920)

Finance costs: - loan notes

(380)

(180)

- overdraft

(220)

(600)

-

(180)

Profit before tax

10,200

14,900

Income tax expense

(3,200)

(4,400)

Profit for the year

7,000

10,500

Other comprehensive income:

Gain on property revaluation

5,000

1,200

Total comprehensive income

12,000

11,700

Stated Capital Capital Surplus Income Surplus

GHS000 GHS000 GHS000

Total

Balances b/f 8,500 2,500 15,800

26,800

Share issue 12,900 - -

Comprehensive

12,900

Income - 5,000 7,000

12,000

Dividends paid - - (4,000)

(4,000)

Balances c/f 21,400 7,500 18,800

STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH:

2019 2018

GHS000 GHS000 GHS000 GHS000

Assets

Non-current assets (see note)

Cost 93,500 80,000

Accumulated depreciation (43,000) (48,000)

50,500 32,000

Current assets

Inventory 5,200 4,400

Trade receivables 7,800 2,800

47,700

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2019

Bank - 13,000 700

Total assets 63,500

Stated capital

21,400

8,500

Capital surplus

7,500

2,500

Income surplus

18,800

15,800

Non-current liabilities

47,700

26,800

10% loan notes

Current liabilities

4,000

3.000

Bank overdraft

3,600

-

Trade payables

4,200

4,500

Taxation

3,000

5,300

Warranty provision

1,000

11,800

300

10,100

63,500

39,900

Note:

Non-current assets During the year the company redesigned its display areas in all of its outlets. The previous displays had cost GHS10million and had been written down by GHS9million. There was an unexpected cost of GHS500,000 for the removal and disposal of the old display areas. Also during the year, the company revalued the carrying amount of its property upwards by GHS5million and the accumulated depreciation on these properties of GHS2million was reset to zero.

All depreciation is charged to operating expenses.

Required: Prepare a statement of cash flows for PEH Ltd for the year ended 31 March 2019 in accordance with IAS 7 - Statement of Cash Flows.