Practice Question Q.No.1. Following are the financial statements of Pakistan Products Limited: Pakistan Product Limited Statements of Financial Position As on June 30, 2009 and 2008. Share capital and reserves: Issued, subscribed and paid up capital Retained earnings Non-current liabilities: TFCs Current Liabilities: Trade and other payables Provision for taxation Total Liabilities and Equity ASSETS Non-current assets: Property, plant and equipment: Land Building Equipment Current Assets: Inventory Trade receivables Prepaid expenses Cash and bank balances Total Assets Additional Information: 1. 2. 3. June 30, 2009 (Rs.000) 19,300 5,610 24.910 5,050 1,650 1,115 2,765 32,725 11,500 6,900 6,700 3,400 2,800 565 860 32,725 June 30, 2008 4. TFCs were redeemed at face value by issuing ordinary shares at par. 5. Rs.150,000 were provided against tax liability for the year. (Rs.000) 19,000 5,930 24.930 5,200 1,800 1,100 2,900 33,030 11,800 7,000 6,350 3,550 2,650 580 1,100 33,030 A piece of land was sold for cash at 20% profit. Dividends of Rs.500,000 were declared and paid during the year. Equipment of Rs.700,000 was purchased for cash. In addition, an equipment costing Rs.300,000 with a book value of Rs.50,000 was sold for Rs.40,000 for cash. Required: Using indirect method, prepare Statement of Cash Flows for the year ended June 30, 2009 as per the requirements of IAS-7