QUESTION 4 126 MARKSI Negril Development Limited NDL) is a publicly listed company. The following financial statements of the company are available Statement of Comprehensive income for the year eaded 31 march 2013 5000 5740 148403 900 Revenue Cost of Sales Gross Pro Income from gains on inter property Distribution coste Administration experie Finance costs Profit before tax Taxation Profit for the year Other Comprehensive income Gaison property valuation Total Comprehensive in.com (120) (350) (50) 440 (100) 250 100 180 31 March 2017 Statement of Financial Position as 31 March 2018 at: 5000 S000 S000 S000 Assets Non-current assets (note 1) Property. Plant and Equipment Investment Property 280 420 3300 1800 400 2260 Current assets Inventory Trade receivables Income tax asset Bank 1210 480 0 10 KIO 540 SO 0 1700 5000 1400 1660 1000 600 Equity and liabilities Equity shares of S020 each Share peemium Revaluation reserve Retaineering 0 150 1440 1110 2190 3190 1360 1960 Non-current liabilities 0% Do notes noteid Deferred to 0 50 400 50 430 Current Liabilities Trade payables Blank overdraft Warranty provision note iv) Current tax payable 1410 0 200 150 1050 120 100 0 1760 SODO 1270 3660 51 90 Non-current liabilities 6% loan notes (note ii) Deferred tax 0 50 400 30 SO 430 Current Liabilities Trade payables Bank overdraft Warranty provision(note iv) Current tax payable 1410 0 200 150 1050 120 100 0 1760 5000 1270 3660 4 The following supporting information is available: (i) An item of plant with a carrying amount of S240,000 was sold at a loss of $90,000 during the year. Depreciation of $280,000 was charged (to cost of sales) for property. plant and equipment in the year ended 31 March 2018 NDL uses the fair value model in IAS 40 Investment Property. There were no purchases or sales of investment property during the year. (ii) The 6% loan notes were redeemed carly incurring a penalty payment of S20,000 which has been charged as an administrative expense in the income statement. (III) There was an issue of shares for cash on October 2018. There were no bonus issues of shares during the year. NDL gives a 12-month warranty on some of the products it sells. The amounts shown in current liabilities as warranty provision are an accurate assessment, based on past experience of the amount of claims likely to be made in respect of warranties outstanding at each year end. Warranty costs are included in cost of sales. A dividend of 3 cents per share was paid on 1 January 2018 (iv) Required: (a) Prepare a statement of cash flows for Negril Development Limited(NDL) for the year to 31 March 2018 in accordance with IAS 7 Statement of cash flows. (16 marks) (b) Comment on the cash flow management of NDL as revealed by the statement of cash flows and the information provided by the above financial statements. Note: ratio analysis is not required, and will not be awarded any marks (10 marks)
