Question 3: (25 marks) Prepare the statement of cash flows for Zeta LTD for the year ending 31st December 2018 as IAS 7 using the indirect method. required under ZETA LTD Statement of Financial Position As at December 31, 2018 2017 2018 000 E000 000 000 Assets Non-current assets 1,900 Property, plant and equipment at cost or valuation Less Accumulated depreciation Investments at cost Total Non Current Assets 2,600 1,150 750 900 1,700 150 1,300 1,700 Current Assets 600 Inventory Trade receivable 900 1,200 780 Short term investments 250 2,350 4,050 1,740 Bank Balance 360 3,040 Total Assets Equity Share capital (1 ordinary share) Share premium 850 750 200 150 Revaluation reserves 600 400 Retained earnings 750 500 Total Equity 2,400 1,800 Non-current liabilities Long term loans Current Liabilities 1,000 570 Trade payable Current tax payable Equity and Total Liabilities 650 550 650 120 670 4,050 3,040 Page 6 of 7 Additional Information Freehold property which was valued at 400,000 in 2017 was revalued at 600,000 in 2018 Plant and Equipment with an original cost of 150,000 and accumulated depreciation of l10.000 was sold for 50,000 Investments costing of 150,000 was sold for 230,000 There were no dividends paid or proposed in either year Interest paid and payable is 80,000 There is no estimated tax for this year 7. END OF QUESTION PAPER