Minster is a public limited company. Following are the details of its financial statements for the year ended 30 September 20X6.

Notes to Financial Statements

i) Included in PPE is a coal mine ans related plant that Minster purchased on 1 October 20X5. Legislation requires that in ten years time (estimated life of mine) Minster will have to landscape the affected area. The future costs of this has been estimated and discounted at a rate of 8% to a present value of $150,000. This cost has been included in the carrying amount of the mine. $150,000 added with unwinding of the discount has been treated as provision for the year end. The unwinding of the discount is already included in the finance costs in the Statement of Profit/Loss. (Hint: This needs to be subtracted from the total finance costs to arrive at interest paid; $150,000 has to be considered as a non-cash addition in calculation of PPE)

Other land was revalued upward by $35,000 during the year.

Depreciation of property, plant and equipment for the year was $255,000.

There were no disposals.

The software was purchased on 1 April 20X6 for $180,000.

ii) On 1 April 20X6, there was a bonus issue of equity shares of one for every four held, utilizing the share premium. A further cash share issue was made on 1 June 20X6. No shares were redeemed during the year.

iii) A dividend of 5 cents per share was paid on 1 July 20X6.

1. Prepare a statement of cash flows for Minster for the year to 30 September 20X6 in accordance with IAS 7.
2. Comment on Minsters cash flows.

BT Statement of Financial Position at 30 September 20X6 20X5 $000 $000 $000 $000 Non-current Assets Property, plant & equipment Intangible 1,065 1,430 135 1,565 1,065 510 Current assets Inventory Receivables Prepayments Bank 480 270 380 55 80 35 830 980 Total Assets 2,395 2,045 500 300 Equity & Liabilities Capital & reserves Equity shares of 25 cents each Share Premium Revaluation Surplus Retained earnings 150 60 85 25 965 950 1,660 1,375 30 Non-current liabilities Finance lease payables 9% loan notes Environmental Provision 10 110 162 0 - 282 30 Current liabilities Bank overdraft Trade payable Finance lease payables Income tax 25 300 50 40 470 55 75 78 453 2.395 640 2,045 Total equity & liabilities Statement of Profit or loss for the year ended 30 September 2046 $000 Revenue 1,397 cost of sales (1,110) gross profit 287 operating expenses (125) 162 Finance costs (40) Investment income 20 Profit before tax 142 Taxation (57) Profit for the year 85