Question 5 Statement of Cash Flows (20 marks) A summarised comparative statement of financial position of Waikato Ltd is presented below, together with the statement of profit or loss and other comprehensive income for the year ended 30 June 20X2: 30 June 20X1 ($000) 176 220 Cash Accounts receivables Allowance for impairment loss Inventory Plant Accumulated depreciation - plant Buildings Accumulated depreciation - buildings Land 30 June 20X2 ($000) 269 284 (70) 100 420 (40) (30) 90 400 (40) Accounts payable Accrued expenses Income tax payable Borrowings Share capital Retained earnings Land revaluation reserve 400 (40) 100 1276 80 10 76 100 400 (60) 250 1553 93 20 88 110 500 692 50 1553 400 610 1276 5 Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 20X2 Amount ($000) Sales 885 Cost of sales (240) Gross profit 645 Wages (200) Lease rentals (70) Depreciation - building (20) Depreciation - plant (70) Impairment of accounts receivable (40) Electricity and rates (45) Interest expense (11) Profit before tax 189 Income tax expense (57) Profit for the year 132 Other comprehensive income Gain on revaluation of land 50 Total comprehensive income 182 Additional information a) There have been no cash sales. b) Land with a fair value of $100,000 has been acquired by the issue of 100,000 paid ordinary shares for $1 per share. c) Wages and lease rentals are accrued prior to payment. Accrued expenses on the statement of financial position are for wages and lease rentals. d) Electricity and rates and interest expense are paid as incurred. e) The accounts payable is for inventories purchased. f) During the year, plant that cost $100,000 and that has accumulated depreciation of $70,000 is sold for $30,000 cash. The company also purchased an item of plant for cash. g) A $50 dividend has been paid during 20X2. h) Ignore deferred tax on land revaluation gain. i) Treat interest and divided paid as financing cash flows. Required: Using the direct method of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with NZ IAS 7 for the year ended 30 June 20X2. (20 marks)