QUESTION 2 Professional Library TOMAH Limited is a public listed manufacturing company. Its draft summarised financial statements for the year ended 30 September 2018 (and 2017 comparatives) are: Statements of profit or loss and other comprehensive income for the year ended 30 September: 2018 2017 GH '000 GH&'000 Revenue 44,900 44,000 Cost of sales 31,300 29,000 Gross profit 13,600 15,000 Distribution costs (2,400) (2,100) Administrative expenses (7,850) (5,900) Investment properties - rentals received 350 400 fair value changes (700) 500 Finance costs (600) (600) Profit before taxation 2,400 7,300 Income tax (600) (1,700) Profit for the year 1.800 5,600 Other comprehensive income 1,300 1,000 2 6,600 2017 GH4'000 GHE000 Total comprehensive income 500 Statements of financial position as at 30 September: 2018 GH&'000 GHe 000 Assets Non-current assets Property, plant and equipment 26,700 Investment properties 4,100 30,800 Current assets Inventory 2,300 Trade receivables 3,000 Bank 5,300 Total assets 36,100 25,200 5.000 30,200 3.100 3,400 300 0 6.800 37,000 Equity and liabilities Equity Equity shares of GH1 each Revaluation reserve Retained earnings 17,200 1,200 7,700 26,100 17,000 2,500 8,700 28,200 Non-current liabilities 12% loan notes 5,000 3,000 Current liabilities Trade payables Accrued finance costs Bank overdraft Current tax payable 4,200 100 200 500 3,900 50 0 1.850 5,000 36,100 5,800 37.000 The following information is relevant: i) On 1 July 2018, TOMAH Limited acquired a new investment property at a cost of GH 1,400,000. On this date, it also transferred one of its other investment properties to property, plant and equipment at its fair value of GH1,600,000 as it became owner- occupied on that date. TOMAH adopts the fair value model for its investment properties. ii) TOMAH also has a policy of revaluing its other properties (included as property, plant and equipment) to market value at the end of each year. Other comprehensive income and the revaluation reserve both relate to these properties. iii) Depreciation of property, plant and equipment during the year was GH1,500,000. An item of plant with a carrying amount of GH2,300,000 was sold for GH1,800,000 during September 2018 Required: Prepare the statement of cash flows for TOMAH Ltd for the year ended 30 September 2018 in accordance with IAS 7 Statement of Cash Flows using the indirect method. (15 marks) QUESTION 2 Professional Library TOMAH Limited is a public listed manufacturing company. Its draft summarised financial statements for the year ended 30 September 2018 (and 2017 comparatives) are: Statements of profit or loss and other comprehensive income for the year ended 30 September: 2018 2017 GH '000 GH&'000 Revenue 44,900 44,000 Cost of sales 31,300 29,000 Gross profit 13,600 15,000 Distribution costs (2,400) (2,100) Administrative expenses (7,850) (5,900) Investment properties - rentals received 350 400 fair value changes (700) 500 Finance costs (600) (600) Profit before taxation 2,400 7,300 Income tax (600) (1,700) Profit for the year 1.800 5,600 Other comprehensive income 1,300 1,000 2 6,600 2017 GH4'000 GHE000 Total comprehensive income 500 Statements of financial position as at 30 September: 2018 GH&'000 GHe 000 Assets Non-current assets Property, plant and equipment 26,700 Investment properties 4,100 30,800 Current assets Inventory 2,300 Trade receivables 3,000 Bank 5,300 Total assets 36,100 25,200 5.000 30,200 3.100 3,400 300 0 6.800 37,000 Equity and liabilities Equity Equity shares of GH1 each Revaluation reserve Retained earnings 17,200 1,200 7,700 26,100 17,000 2,500 8,700 28,200 Non-current liabilities 12% loan notes 5,000 3,000 Current liabilities Trade payables Accrued finance costs Bank overdraft Current tax payable 4,200 100 200 500 3,900 50 0 1.850 5,000 36,100 5,800 37.000 The following information is relevant: i) On 1 July 2018, TOMAH Limited acquired a new investment property at a cost of GH 1,400,000. On this date, it also transferred one of its other investment properties to property, plant and equipment at its fair value of GH1,600,000 as it became owner- occupied on that date. TOMAH adopts the fair value model for its investment properties. ii) TOMAH also has a policy of revaluing its other properties (included as property, plant and equipment) to market value at the end of each year. Other comprehensive income and the revaluation reserve both relate to these properties. iii) Depreciation of property, plant and equipment during the year was GH1,500,000. An item of plant with a carrying amount of GH2,300,000 was sold for GH1,800,000 during September 2018 Required: Prepare the statement of cash flows for TOMAH Ltd for the year ended 30 September 2018 in accordance with IAS 7 Statement of Cash Flows using the indirect method. (15 marks)