Question 1015 Marka: Prepare the statement of cash flows for LINKS LTD for the year ending 31st December 2018 as required under IAS 7 using the indirect method. LINKS LTD Statement of Financial Position As at December 31, 2018 2017 2018 2000 000 2000 1000 Non-current assets Property, plant and equipment at cost or valuation Less Accumulated depreciation 3,200 2,100 750 900 2,300 1,350 Investments at cost 150 Current Assets 900 600 Inventory Trade receivable 1,200 780 200 Short term investments 250 2,350 160 1,740 Bank Balance 4,650 3,240 Total Assets 750 1,200 Equity Share capital (l ordinary share) Share premium 200 150 750 500 Revaluation reserves 1,200 750 Equity Share capital (l ordinary share) Share premium Revaluation reserves Retained earnings 200 150 750 500 850 600 3,000 2,000 Non-current liabilities Long term loans 1,000 570 Page 2 of 6 Current Liabilities 650 550 Trade payable Current tax payable 120 650 670 4,650 3,240 Equity and Total Liabilities Additional Information i. Freehold property which was valued at 600,000 in 2017 was revalued at 850,000 in 2018 ii. Plant and Equipment with an original cost of 180,000 and accumulated depreciation of 120,000 was sold for 50,000 iii. Investments costing 150,000 was sold for 240,000 iv. There were no dividends paid or proposed in either year I V. Interest paid and payable is 90,000 vi. Short term investments were sold at cost which is treated as cash and cash equivalent