QUESTION 1 The following statement of financial position balances of Frances Ltd. as at 30 June are presented to you: 2011 2012 RR Debtors 178 500 161 300 Inventory 80 000 100 000 Dividends receivable 20000 16000 Ordinary share capital (300 000) (210 000) Retained camnings (570000) (400 000) Long-term loan (60000) (70000) Creditors (140 000) (50000) Taxation payable (80000) (50000) Additional information 1. The following items appear in the statement of comprehensive income and statement of changes in equity for the year ended 30 June 2012: Revenue 800 000 Income tax expense 90 000 Dividend income 30 000 Dividends declared 40 000 Bad debts 12 000 Interest paid on bank overdraft 1 500 R 2. An allowance for credit losses was maintained at 15% of debtors. 3. On 30 April 2012 a piece of land was purchased to expand the factory, at a cost price of R40 000. The purchase price was settled by issuing ordinary shares. 4. During the year a capitalisation issue of R20 000 was made. 5. The long-term loan bears interest at a rate of 10% per annum. The loan is repayable in equal annual instalments on 1 January each year. Interest is payable monthly on the last day of the month. All instalments and interest are paid up to date. YOU ARE REQUIRED TO Prepare only the operating and financing activities sections of the statement of cash flows for the year ended 30 June 2012 in compliance with the requirements of IAS 7. No notes are required