Q: Prepare the statement of cash flows for the year to 31 December 20X2 using the indirect method, show the note to the solutions figures.

SHABNUM CO STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X2 $'000 Revenue Cost of sales Gross profit Distribution costs Administrative expenses Operating profit Interest received Interest paid Profit before taxation Taxation Profit for the year 2,553 (1,814) 739 (125) (264) 350 25 (75) ) 300 (140) 160 20X1 $'000 305 200 25 SHABNUM COSTATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 20X2 $'000 Assets Non-current assets Property, plant and equipment 380 Intangible assets 250 Investments Current assets Inventories 150 Receivables 390 Short-term investments 50 Cash in hand 2 Total assets 1,222 Equity and liabilities Equity Share capital ($1 ordinary shares) 200 Share premium account 160 Revaluation surplus 100 Retained earnings 260 102 315 1 948 150 150 91 180 170 50 Non-current liabilities Loan Current liabilities Trade payables Bank overdraft Taxation Total equity and liabilities 127 85 120 1,222 119 98 110 948 The following information is available. (a) The proceeds of the sale of non-current asset investments amounted to $30,000. (b) Fixtures and fittings, with an original cost of $85,000 and a carrying amount of $45,000, were sold for $32,000 during the year. (c) The following information relates to property, plant and equipment. 31.12.20X2 31.12.20X1 $'000 $ 000 Cost 720 595 Accumulated depreciation 340 290 Carrying amount (book value) 380 (d) 50,000 $1 ordinary shares were issued during the year at a premium of 20c per share. (e) Dividends totalling $80,000 were paid during the year. 305 *Prepare the statement of cash flows for the year to 31 December 20X2 using the Indirect method, show the note to the solutions figures