QUESTION $1$

$S$ Limited $is$ involved $in$ the retail industry and its financial statements are $as$ follows:

$S$ Limited Statement $of$ Financial Position $asat31$ December $2023$

$20232022$

$$000$ $$000$

Non$-$Current Assets

Property, Plant & Equipment $19401225$

Current Assets

Inventories $327371$

Accounts receivable $189304$

Cash and cash equivalents $4436$

Total Assets $25001895$

Equity & Liabilities

Equity

Share capital $100600$

Share premium $10060$

Retained earnings $673413$

Revaluation surplus $130-$

Total equity $17031073$

Non$-$current liabilities

Long$-$term loan $420500$

Total non$-$current liabilities $420500$

Current liabilities

Accounts payables $242212$

Bank overdraft $9580$

Current tax payables $4030$

Total current liabilities $377322$

Total Equity and Liabilities $25001895$

Sales Limited Statement $of$ Profit $or$ Loss & Other Comprehensive Income for the year$-$ended $31$ December $2023$

$$000$

Revenue $7,800$

Cost $of$ Sales $(6,900)$

Gross Profit $900$

Distribution Costs $(342)$

Administration Expenses $(168)$

Finance Costs $(30)$

Profit before Tax $360$

Income Tax Expense $(80)$

Profit for the Year $280$

Other Comprehensive Income

Gains $on$ Property Revaluations $130$

Other Comprehensive Income for the year, net $of$ tax $130$

Total Comprehensive Income for the year, net $of$ tax $410$

Notes:

$(i)$ Property, Plant & Equipment with a carrying value $of$ $$200,000$ was sold for $$160,000.$ This asset had originally cost $$320,000.$

$(ii)$ Depreciation $of$ Property, Plant & Equipment during the year amounted $to$ $$240,000.$

$(iii)$ Dividends paid during the year amounted $to$ $$20,000$ and are reported $in$ the Statement $of$ Changes $in$ Equity.

REQUIREMENT:

Prepare a Statement $of$ Cash Flows for the year$-$ended $31$ December $2023$ for $S$ Limited $in$ accordance with IAS $7$ Statement $of$ Cash Flows. $(40$ marks$)$