Question 1 The Cane Growers Enterprise (CGE) is a government owned enterprise which is legislated to generate its own income which it uses to cover capital and recurrent expenditures. CGE is an agent of the National Agriculture Association. The Young Famers association controls 25% of CGE. Outside of these powers, its government also provides CGE with monthly subventions to cover its recurrent expenditures based on CGE budgetary demands and the legal allocations by the government. CGE uses ISPAP to prepare its financial statements. You were asked by to government to assist CGE with its accounting processes, which involved the recording, generation and preparation of accounting transactions and final accounts as stipulated by the IPSASs. Collaborating with a team of qualified and experienced accountants, you were able to prepare the following accounting information of GCE for the year ended December 2022. Details 202 2 202 1 Amount $000 Amount $000 Dividends received from equity investments 1 4 , 200 7,500 Service Charge on loans to beneficiaries 70,400 60,500 Gross margin on sale of sugar canes 367,30 8 255 ,400 Interest on Loans to Members 7,400 8,400 Interest on investments 14,700 15,000 Miscellaneous Income 60 70 Membership Fees 100,020 80,000 Grants Received 50,000 60 ,000 Grants to farmers 35 0,000 0 Donations received 10,000 20,875 Penalties and Fines for breach of Association rules 330 700 Cost of Seminars for Farmers 7,000 6,000 Royalties for use of lands 4,000 3,500 Warehouse Storage 6,000 5,500 General Cleaning & Sanitation 500 1,500 Property Rates 1,000 1,000 Depreciation of Fixed Assets 700 700 Accounting and Consultation Cost 5,000 4,500 Advances to Staff 680 1840 6 Salaries to Staff (Gross) 200,000 1 25,000 Staff Contribution to Social Security & Other Statutory Contributions 1 ,000 750 CGEs Contribution to Social Security & Other Statutory Contributions 3500 108,625 Gain on Sale of Equipment 2,000 0 Proceed on the Sale of Equipment 12,800 0 Plant, Property and Equipment (at cost, after disposal) 450,000 480,000 Accumulated Depreciation 47, 700 47,000 Short -term investments 70,000 30,000 Trade and Other Payables 5,160 6700 Cash and Cash Equivalent 2,500 1,500 Inventory at year end 18 1,018 102 ,414 Receivables 6,500 10,500 Development Bond Issued 150,000 200,000 Contribution from Other Government Entities 75 ,000 75 ,000 Contribution from Non -controlling entities 25,000 25,000 Notes 1. Dividend receivable as at 31 December 2021 was $5,000,000 and Dividend receivable as at 31 December 2022 was $2,000,000. 2. CGE receives an annual transfer of $30,000,000 from the National Agricultural Association for the operating of the industry. 3. Service Charge Outstanding as at 31 December 2022 was $500,000. 4. Interest outstanding from Loans to Members as of 31 December 2021 was $2,000,000. Interest receivable at 31 December 2022 was $6,000,000. 5. All membership fees were paid in full. In 2022, twenty (20) members prepaid their membership for eight ( 8) months at $15,000 per month. 6. Twenty percent (20%) of the grants were not received at the end of each year. 7. To secure adequate storage in 2022, payments of $3,000,000 were made in advance. 8. Bond issued in 2021 was issued for $200,000,000. There was a repayment of $50,000 in 2022. 9. All statutory contributions were paid at year end.

Required:

prepare Statement of Financial Performance and

Cash flow for 2022 in line with ISAPS. Expenses should be classified by nature. No comparative data required for the Cashflow.