QUESTION 1

Below are the financial statements of Galamsey Gold Company Limited, a mining company that has been operating in the country for over a decade.

Statement of Financial Position as at 31st December.
	2017	2016
Non-current assets	GH 000	GH 000
Property, plant and equipment	511,984	492,694
Deferred mine development expenditure	293,704	279,373
Asset retirement costs	29,644	21,367
Deferred tax asset	-	4,691
Other non-current assets	60,027	25,625
	895,359	823,750
Current assets
Inventory	71,753	48,411
Accounts receivable	13,205	17,016
Amounts due from related companies	-	827
Cash and bank	38,032	40,466
	122,990	106,720
Current liabilities
Third party debt	8,824	-
Accounts payable	51,882	55,315
Reclamation liability	326	92
Amounts due to related companies	23,331	111,008
Deferred tax liability	1,985	1,015
	86,348	167,430
Net current assets/(liabilities)	36,642	(60,710)
Non-current liabilities
Third party debt	(66,176)	-
Loans due to related companies	(511,382)	(509,113)
Reclamation liability	(33,578)	(22,719)
Deferred tax liability	(19,722)
Other non-current liabilities	(5,530)	(4,033)
	(636,388)	(535,865)
Net assets	295,613	227,175
Financed by:
Stated capital (@ GH 3.00 per share)	158,406	158,406
Advance towards stated capital	117,207	116,193
Income surplus account - surplus/(deficit)	20,000	(47,424)
	295,613	227,175

Income Statement for the year ended 31st December.
	2017	2016
Turnover	434,911	305,620
Cost of sales	(220,496)	(178,271)
Gross profit	214,415	127,349
General and administrative expenses	(135,208)	(112,051)
Operating profit	79,207	15,298
Other income	14,614	4,361
Net profit before tax	93,821	19,659
Income tax	(25,383)	(7,857)
Profit after tax transferred to income surplus account	68,438	11,802

Income Surplus Account
Balance b/d	(47,424)	(59,226)
Profit after tax transferred from profit and loss account	68,438	11,802
	21,014	(47,424)
Dividend paid	1,014	0
Surplus/(deficit) at 31 December	20,000	(47,424)

The following additional information is also relevant:

1. The market price per share is at GH 12.00

1. For the line items within the Financial Statement of Galamsey Gold Company Limited in Question 1, as presented above, state for each, whether or not there was a resulting cash outflow or inflow from the year 2016 to 2017.

1. Property, Plant and Equipment
2. Stocks/Inventories
3. Account Receivables
4. Amounts due from related companies
5. Cash and Bank
6. Stated Capital
7. Amounts due to related companies
8. Deferred Tax Liability
9. Deferred Tax Asset
10. Loans due to related companies
11. Third party debt
12. Accounts Payable