QUESTION 2 [15 MARKS] Below are the statements of financial position for Ndjeke yaMalimba Ltd at 31 December 2018 and 31 December 2019 and the statement of profit or loss and other comprehensive income for the year ended 31 December 2019. STATEMENTS OF FINANCIAL POSITION 2019 2018 N$000 N$000 ASSETS Non-current assets Property, Plant & Equipment 798 638 Developments costs 110 92 908 730 Current assets Inventories 313 280 Trade receivables 208 186 Cash 111 4 632 470 Total assets 1,540 1,200 EQUITY AND LIABILITIES Equity N$1 ordinary shares 220 200 Share premium 140 80 Revaluation surplus 42 - Retained earnings 599 57 1,001 850 Non-current liabilities 4% loan notes 250 100 Deferred tax 76 54 Provisions for warranties 30 26 356 180 Current Liabilities Trade payables 152 146 5 Current tax payable 26 24 Interest payable 5 - 183 170 Total equity and liabilities 1,540 170 N$000 Revenue 1,100 Cost of (750) Gross profit 350 Expenses (247) Finance costs (10) Profit on sale 7 Profit before tax 100 Income tax expense (30) PROFIT FOR THE YEAR 70 Other comprehensive income: Gain on property revaluation 60 Income tax relating to gain on property revaluation (18) Other comprehensive income for the year, net of tax 42 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 112 Notes: i. Depreciation of property, plant and equipment during 2019 was N$54,000 and deferred development expenditure amortised was N$25,000. ii. Proceeds from the sale of equipment were N$58,000 giving rise to a profit of N$7,000. No other items of property, plant and equipment were disposed of during the year. iii. Finance costs represent interest paid on the loan notes. New loan notes were issued on 01 January 2019. iv. The company revalued its property at the year end. Company policy is to treat revaluations as realised profits when the asset is retired or disposed of. Required: 6 Prepare a statement of cash flows for Ndjeke yaMalimba Ltd for the year ended 31 December 2019, using the indirect method in accordance with IAS 7.