low are the statements of financial position of Altamont Limited as at 31 March 2018 and 31 March 2017, together with the statement of profit or loss and other comprehensive income for the year ended 31 2018.

2018

2017

Non-current assets

Property, plant and equipment Development Expenditure

Current assets Inventories Trade receivables Investments Cash

Total assets

Equity

Share capital-$1 Ordinary shares Share premium

Revaluation surplus

Retained Earnings

Non-Current liabilities

12% Debentures Finance Lease Liabilities Deferred Tax

Current Liabilities

Trade payables

Finance Lease Liabilities Current Tax

Debenture interest

Bank overdraft

Total equity and liabilities

$'000

925 290

$'000

737 160

1,215

897

360 274 143

29

227 324 46 117

806

714

2021

1611

500

350

160

229

400 100 60 255

1,239

815

150 100 48

100 80 45

298

225

274 17 56 5 132

352 12 153 0 54

484

571

2,021

1,611

Statement of Comprehensive Income for the year ended 31 December 2018

$,000

Revenue

Cost of sales

Gross profit

Other expenses

Finance costs

Profit before tax

Income tax expenses

Profit for the year

Other comprehensive income

Gain on revaluation of property, plant & equipment

1476 (962)

514 (157)

(15)

342 (162)

180 100

Total comprehensive income for the year

280

Additional information:

(i) During 2018, amortisation of $60,000 was charged on development projects.

(ii) During 2018 items of property, plant and equipment with a carrying amount of $103,000 were sold for $110,000. Profit on sale was netted off against 'other expenses'. Depreciation charged in the year on property, plant and equipment totalled $57,000. Altamont acquired $56,000 of property, plant and equipment by means of leases, payments being made in arrears on the last day of each accounting period.

(iii) The current asset investments are government bonds and management has decided to class them as cash equivalents.

(iv) The new debentures were issued on 1 April 2017. Finance cost includes debenture interest and lease finance charges only.

(v) During the year Altamont made a 1 for 8 bonus issue, capitalising its retained earnings, followed by a rights issue.

Required

(a) Prepare a statement of cash flows for Altamont in accordance with IAS 7 using the indirect method. (21

marks)

(b) Comment on the statement of cash flows calculated in part (a) above. (5 marks

FNANCTAl. AEFOETTC FIANCWI. AEFOKTIN Ane rar maded 31 . 2018 . Additicent iafarwatios: acounting pritiol. Additional information: (i) During 2018, amortisation of $60,000 was charged on development projects. (ii) During 2018 items of property, plant and equipment with a carrying amount of $103,000 were sold for $110,000. Profit on sale was netted off against 'other expenses:. Depreciation charged in the year on property, plant and equipment totalled $57,000. Altamont acquired $56,000 of property, plant and equipment by means of leases, payments being made in arrears on the last day of each accounting period. (iii) The current asset investments are government bonds and management has decided to class them as cash equivalents. (iv) The new debentures were issued on 1 April 2017. Finance cost includes debenture interest and lease finance charges only. (v) During the year Altamont made a 1 for 8 bonus issuc, capitalising its retained earnings, followed by a rights issue. Required (a) Prepare a statement of cash flows for Altamont in accordance with LAS 7 using the indirect method. (21 marks) (b) Comment on the statement of cash flows calculated in part (a) above. ( 5 marks) FNANCTAl. AEFOETTC FIANCWI. AEFOKTIN Ane rar maded 31 . 2018 . Additicent iafarwatios: acounting pritiol. Additional information: (i) During 2018, amortisation of $60,000 was charged on development projects. (ii) During 2018 items of property, plant and equipment with a carrying amount of $103,000 were sold for $110,000. Profit on sale was netted off against 'other expenses:. Depreciation charged in the year on property, plant and equipment totalled $57,000. Altamont acquired $56,000 of property, plant and equipment by means of leases, payments being made in arrears on the last day of each accounting period. (iii) The current asset investments are government bonds and management has decided to class them as cash equivalents. (iv) The new debentures were issued on 1 April 2017. Finance cost includes debenture interest and lease finance charges only. (v) During the year Altamont made a 1 for 8 bonus issuc, capitalising its retained earnings, followed by a rights issue. Required (a) Prepare a statement of cash flows for Altamont in accordance with LAS 7 using the indirect method. (21 marks) (b) Comment on the statement of cash flows calculated in part (a) above. ( 5 marks)