QUESTION $1$

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

S Limited Statement of Financial Position as at $31$ 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$)$

QUESTION $2$

Suppose portfolio I has a total value of $$200000$ and of this total, asset A contributes $$70000$ and B the remainder. Assuming the expected income for A and B are $$10000$ and $$60000$ respectively.

a$)$ Calculate

i$)$ expected return of the portfolio $(2)$

ii$)$ Co$-$efficient of variation $($CV$)(6)$

b$)$ Explain five major goals of a firm $(12)$

$[20]$

QUESTION $3$

ABC Ltd has a $5-$year acceptable maximum payback period. The firm is considering the purchase of a machine and must choose between two alternative ones. The first machinery requires an initial investment of $$150000$ and generates annual after$-$t