QUESTION 1 (30 marks) RoboTel Pte Ltd ("Robo Tel") is engaged in the trading and retail of networking and telecommunications equipment. The following are its financial statements: RoboTel Pte Ltd Statement of comprehensive income for the financial year ended 30 June 2018 Revenue Other income Operating costs and expenses Net profit before tax Income tax expense Net profit after tax Other comprehensive income: Surplus in revaluation of property, plant & equipment Total comprehensive income $'000 20,500 380 20,880 (18,110) 2,770 (490) 2,280 60 2,340 RoboTel Pte Ltd Statement of changes in equity for the financial year ended 30 June 2018 Share Asset Retained Revaluation capital profits reserve $'000 $'000 $'000 Total $'000 16,000 170 60 Opening balance Total comprehensive income Dividends paid Ending balance 3,330 2,280 (240) 5,370 19,500 2,340 (240) 21,600 16,000 230 QUESTION 1 (Cont'd) RoboTel Pte Ltd Statement of financial position as at 30 June 2018 $'000 2017 $'000 Assets Non-current assets Property, plant and equipment Investment property 16,130 3,545 19,675 14,420 3,200 17,620 Current assets Inventories Trade receivables Prepayments and other receivables Cash and cash equivalents 2,780 3,725 120 265 6,890 1,850 2,715 80 160 4,805 Total Assets 26,565 22,425 Shareholders' equity Share capital Reserves 16,000 5,600 21,600 16,000 3,500 19,500 Liabilities Non-current liabilities Bank loan Debentures 655 915 900 1,815 655 2,240 50 Current liabilities Trade payables Interest payable Accruals and other payables Bank loan due within 12 months Provision for income tax 1,660 35 230 125 300 195 365 3,150 220 2,270 Total Liabilities 4,965 2,925 Total Equity & Liabilities 26,565 22,425 QUESTION 1 (Cont'd) Additional information: 1. Net profit before tax for the financial year ended 30 June 2018 was determined after charging (crediting) the following: Depreciation Impairment of trade receivables Inventory written off Interest expense Advertising and promotion costs General and administration costs Marketing and distribution costs Exchange difference on year-end revaluation of foreign currency-denominated trade payables Rental income from investment property Gain on sale of equipment Gain on sale of investment property Change in fair value of investment property $'000 820 90 54 110 530 1,860 550 (25) (180) (15) (85) (75) 2. There was no disposal of property, plant and equipment except the sale of some fully-depreciated equipment. 3. A unit of investment property with a book value of $945,000 was sold in January 2018. RoboTel adopts the fair value model in accounting for investment property. 4. On 1 July 2017, RoboTel issued debentures which mature in 2023. 5. A surplus on revaluation of its office building was recorded on 30 June 2018. 6. An additional bank loan amounting to $550,000 was taken up in February 2018 Required (a) Based on the information provided, prepare a statement of cash flows for RoboTel for the financial year ended 30 June 2018 in accordance with the requirements of FRS 7. Statement of Cash Flows. Present all answers to the nearest thousand, report the cash flows from operating activities using the indirect method, and show relevant workings. (18 marks)