QUESTION 2 (Optional)

A summarised comparative statement of financial position of Charlton Ltd is presented below.

	30 June 2021	30 June 2022
Cash		$	96 000				$	49 000
Accounts receivable (net)			147 000					163 000
Prepayments			20 000					15 000
Inventories			60 000					104 000
Land			40 000					40 000
Plant			368 000					420 000
Accumulated depreciation			(45 000)					(70 000)
Deferred tax asset			20 000					24 000
		$	706 000				$	745 000
Accounts payable		$	140 000				$	152 000
Accrued liabilities			36 000					42 000
Current tax payable			24 000					31 000
Dividend payable			56 000					50 000
Borrowings			73 000					75 000
Share capital			335 000					345 000
Retained earnings			42 000					50 000
		$	706 000				$	745 000

Additional information

• Plant additions amounted to $72000. Plant with a carrying amount value of $15000. (cost $20000, accumulated depreciation $5000) was sold for $22000. The proceeds for the sale of plant had not been received by 30 June 2022.
• Accounts payable at 30 June 2021 include $34000 arising from the acquisition of plant.
• Accrued liabilities include accrued interest of $3000 at 30 June 2021 and $4000 at 30 June 2022.
• The increase in share capital of $10000 arose from the reinvestment of dividends.
• The profit for the year ended 30 June 2022 was $92000, after interest expense of $6000 and income tax expense of $46000. There were no other items of comprehensive income.
• Dividends declared out of profits for the year were: interim dividend $34000, final dividend $50000.

REQUIRED:

Using the indirect method of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with IAS 7 for the year ended 30 June 2022.

If you could show the working that would be really helpful.