QUESTION 1 [25 MARKS) The following is a list of account balances from the books of BomFree Ltd on 31 October 2017 and 31 October 2018, and an extract from the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 October 2018 Ordinary Share Capital 7.5% Preference Share Capital Share premium Retained Earnings Land at cost Buildings at net book value Plant and Equipment at net book value Vehicles at net book value Inventories Receivables Cash at bank Payables Income Tax Liability Bank overdraft Long term loan Proposed dividends-ordinary Proposed dividends-preference 2017 NS 000 1 800 400 40 213 500 1 400 740 420 202 248 20 167 100 2018 NS000 2 000 200 140 438 570 1 200 830 485 246 294 106 140 36 350 200 15 600 180 30 Extracts from Statement of Profit or Loss and Other Comprehensive Income of BornFree Lid for the year ended 31 October 2018 Profit from operations Finance cost interest) Profit before tax Income tax expense Profit after tax NS 000 643 63 580 140 440 BomFree has proposed dividend of N$215 Additional Information: 1. At 1 November 2017 the balances on the accumulated depreciation accounts were as follows: 2 Buildings Plant and Equipment Vehicles N$ 000 350 465 310 2. The information below relates to assets sold during the year ended 31 October 2018 Cost Accumulated Profit(Loss) Depreciation N$ 000 N$ 000 N$ 000 Buildings 250 155 20 Plant and Equipment 220 105 (30) Vehicles 120 70 (10) 3. Depreciation charged for the year ended 31 October 2018 was as follows: Buildings Plant and Equipment Vehicles N$ 000 105 205 65 4. On 30 April 2018 a rights issue of 200.000 ordinary N$1 shares at N$1.50 per share was fully subscribed Note: Advanced tax is to be ignored. Prepare for Code a Statement of Cash Flows for the year ended 31 October 2018 in the form required by IAS 7. Use the indirect method. 3