Question 3 (35 marks) Giving Limited Balance Sheets at December 31 2017 $'000 Non-current Assets Property, plant and equipment Long term receivables 2016 5*000 204,056 5.262 209,318 204,486 810 205.296 Current Assets Foreign receivables Inventories Trade debtors Current portion of long term receivables Other receivables and prepayments Cash and bank 4,588 401,474 233,860 4,260 10,706 64.338 719.226 15,228 502,072 221,764 4,230 19,462 183.906 946.662 Less Current Liabilities Foreign payables Trade creditors Dividends payable Accruals Corporation tax payable Current portion of long term loan 81,676 72,688 64,998 79,392 41,050 195,530 70,350 77,926 89,166 45,220 1.000 479,192 5.494 345,298 Net current assets 373.928 467.470 583,246 672,766 Financed by Share capital Revaluation reserve General reserve Profit and loss account Non-current liabilities Long term loan Debenture 142,880 69,266 99,158 269,584 580.888 204,280 69,266 64,438 323.424 661,408 2,358 2358 1,358 10,000 11.358 583,246 672,766 Question 3 continued Giving Limited Income Statement for the year ended December 31 2016 S'000 Profit before taxation 169,884 Taxation (54.330) Profit after taxation 115,554 Dividends (62.866 Retained profit for the year 52,688 Retained profits brought forward 216.896 Retained profits carried forward 269,584 2017 $'000 196,938 (68,800 128,138 ( 74.298) 53,840 269,584 323,424 Additional information: 1. During the year ended December 31, 2017, plant and machinery originally costing $4,956,000, with accumulated depreciation of $2,372,000 were disposed of for $4,348,000. 2. During the year ended December 31, 2017, plant and machinery were purchased amounting to $21,938,000. 3. The depreciation charge for the year ended December 31, 2017 amounted to $18,924,000. 4. Bonus issue of ordinary shares out of general reserve amounted to $34,720,000. Required: (a) Calculate the dividends paid for the 2017 financial year. (2% marks) (6) Calculate the profit or loss on disposal on the plant and machinery disposed of during the 2017 financial year. (2% marks) (c) Calculate the corporation tax paid during the 2017 financial year. (2% marks) (d) Prepare the Statement of Cash Flows for the year ended December 31, 2017 using the indirect method. (27% marks)