QUESTION ONE

The following are the financial statements of HMK Limited as at $31$ December:

$\backslash$table$[[$Equity and Liabilities:,$2023,2022],[$Equity:$,$Sh$."000,$Sh$."000"],[$Ordinary share capital,$900,000,600,000],[$Share premium,$210,000,90,000],[$Revenue reserves,$246,000,84,000],[$Total equity and reserves,$1,356,000,\frac{?}{\text{b}\text{a}\text{r}}(774,000)$

Additional information:

A machinery with a net book value of Sh$\mathrm{.}12,000,000($original cost Sh$.48,000,000)$ was sold for Sh$.18,000,000.$ Furniture with a net book value of Sh$.18,000,000($original cost Sh$.30,000,000)$ was sold for Sh$.13,000,000.$ Profits and losses on these transactions had been reported in the statement of profit or loss.

Corporate tax for the year ended $31$ December $2023$ was Sh$.80,000,000.$

The proposed dividends for the year ended $31$ December $2022,$ were paid during the year ended $31$ December $2023.$

There was no disposal or revaluation of freehold property in the year ended $31$ December $2023.$

Interest expense charged to the statement of profit or loss for the year ended $31$ December $2023$ was Sh$.38,400,000.$ Accrued interest of Sh$.26,400,000$ is included in the trade payables as at $31$ December $2023.$

Depreciation charged to the statement of profit or loss for the year ended $31$ December $2023$ was as follows:

Sh$.$

Furniture and fixtures $34,000,000$

Plant and machinery $58,000,000$

Required:

Statement of cash flows for the year ended $31$ December $2023$ in accordance with International Accounting Standard $($IAS$)7$ "Statement of Cash Flows".

$($Total: $20$ marks$)$