PSB11.10 Below is the information relating to Simic and Nikolic Ltd for the year ended 30 June 2016. Prepare a statement of cash flows, including asset revaluations, bones share ise and transfer to resernes, using direct and indinect methods SIMIC AND NIKOLIC LTD Statement of financial position as at 30 June 2016 (LO3) 2016 2015 $000 $000 Assets Current assets 3150 1240 Cash 1 220 1 100 Accounts receivable Allowance for doubtful debts (60) 1520 60 (50) 1300 Inventory Prepaid insurance 40 Total current assets 5910 3610 Non-current assets Land 1630 1900 1670 Buildings Accumulated depreciation-buildings Plant and equipment Accumulated depreciation-plant and equipment Office equipment Accumulated depreciation-office equipment 2100 (500) (540) 1454 1258 (610) (440) 430 380 (270) (190) 260 Patents 280 4624 Total non-current assets 4188 Total assets $10534 $7798 Liabilities and equity Current liabilities Accounts payable Accrued expenses Interest payable Income tax payable Final dividend payable 750 260 500 280 100 80 1 100 1 120 600 500 Total current liabilities 2810 2480 Non-current liabilities Borrowings 3000 2200 Total liabilities 5810 4680 Equity Share capital Revaluation surplus General reserve Retained earnings 1400 260 1000 300 300 2764 200 1618 Total equity 4724 3118 Total liabilities and equity $10534 $7798 SIMIC AND NIKOLIC LTD Statement of profit or loss for the year ended 30 June 2016 s000 $000 Sales revenue 14126 Gain from sale of land Gain on sale of equipment 210 230 14566 Less expenses Cost of sales 8876 Bad debts expense Depreciation 28 250 Insurance expense Interest expense Amortisation patents Other expenses 140 180 20 1796 11 290 Profit before income tax Income tax expense Current year Under-provision from previous year Profit for the period 3276 1 100 80 1 180 $ 2096 Additional information (dollar amounts expressed in full units) 1. Equipment with an original cost of $500000 was sold during the year 2. Land with an original value of $600 000 was revalued upwards by $160000 during the year 3. A bonus share dividend of $200 000 was paid from the revaluation surplus 4. An interim dividend was paid during the year Required (a) Prepare a statement of cash flows, using the direct method. (b) Reconcile profit to cash provided by operating activities (Hint: This statement of cash flows is more complex, so you will need to reconstruct all the statement of financial position accounts to solve it.)
