Question 2 (25 marks) Consolidated financial statements of the Patricks Group for the year ended 30 September 2012: Consolidated statements of financial position 2012 2011 000 000 Non-current assets Goodwill P1,930 P1,850 Investment in associate P620 P540 Property, plant and equipment P2,545 P1,625 P5,095 P4,015 Current assets Trade receivables P390 P330 Cash and cash equivalents P210 P140 Inventories P470 P435 P6,165 P4,920 Equity and liabilities Retained earnings P1,755 P1,085 Share capital (P1 shares) P1,500 P1,500 Other reserves P750 P525 P4,005 P3,110 Non-controlling interest P310 P320 P4,315 P3,430 Non-current liabilities: Loans P500 P300 Deferred tax P150 P105 Current liabilities: Trade payables P800 P725 Tax payable P400 P360 P6,165 P4,920 Consolidated statement of profit or loss and other comprehensive income for the year ended 30 September 20X2 000 Revenue P2,090 Operating expenses (P1,155)

Profit from operations P935 Disposal gain of subsidiary P100 Share of profit of associate P115 Finance cost P(35)

Profit before tax P1,115 Taxation (P225)

Profit for the period P890 Other comprehensive income from associate P50 Other comprehensive income P200

Total comprehensive income P1,140

Profit for the year attributable to: Owners of the parent P795 Non-controlling interests P95

P890

Total comprehensive income for the year attributable to: Non-controlling interests P120 Owners of the parent P1,020

P1,140

Consolidated statement of changes in equity Attributable to owners of the parent Attributable to the NCI 000 000 Equity brought forward P3,110 P320 Total comprehensive income P1,020 P120 Disposal of subsidiary (P420) Acquisition of subsidiary P340 Dividends (P125) (P50) Equity carried forward P4,005 P310 During the year, Patricks bought 80% of the equity share capital of Ken paying cash consideration of P1.5 million. The NCI holding was measured at its fair value of P340,000 at the date of acquisition. The fair value of Ken 's net assets at acquisition was made up as follows: 000 Property, plant and equipment P1,280 Inventories P150 Cash and cash equivalents P80 Trade receivables P240 Trade payables (P220) Tax payable (P40)

P1,490

During the year, Patricks sold 60% of his equity shareholding in Rock for cash proceeds of P850,000. The subsidiary had been acquired several years ago for cash consideration of P600,000. The NCI holding was measured at its fair value of P320,000 at acquisition and the fair value of Rock's net assets were P730,000. Goodwill had not suffered any impairment. At the date of disposal, the net assets of Rock were carried in the consolidated statement of financial position as follows: 000 Property, plant and equipment P725 Trade receivables P120 Inventories P165 Trade payables (P80) Cash and cash equivalents P50

P980

Depreciation for the year was charged as P385,000. Plant which had a carrying amount of P250,000 was sold during the year for P275,000. The disposal gain has been recognised under operating costs. Some property, plant and equipment was revalued, and resulted in a revaluation gain of P200,000 being recognised.

From the above information, prepare for Patricks group a consolidated statement of cash flows, for the year ended 30 September 2012. (25marks)