Required: Prepare a statement of cash flows using ended 30 September 2020 (25 marks)

QUESTION 4 (25 marks) The following draft financial statements relate to Tabba, a privately owned entity, 2019 2020 N$000 N$000 15,800 10,600 Tangible non-current assets (note (ii)) Current assets Inventories 1 850 2 550 2 600 3 100 1200 Trade receivables Insurance claim (note (iii)) Cash and bank 1 500 0 850 Total assets 18,600 21,450 6,000 6,000 Equity and liabilities Share capital ($1 each) Revaluation (note (ii) Retained earnings 0 1 600 2 550 850 Non-current liabilities 1700 2,000 Lease liability (note (ii)) 6% loan notes 0 800 0 4 000 10% loan notes 200 500 1,400 900 0 550 Deferred tax Government grants (note (ii)) Current liabilities Bank overdraft Trade payables Government grants (note (ID)) Lease liability (note (ii)) 4050 2950 600 400 900 800 11 100 1 200 Current tax payable Total equity and liabilities 18 600 21 450 The following information is relevant: Statement of profit or loss extract for the year ended 30 September 2020: N$000 Profit from operations 270 Finance cost (260) Interest income 40 Profit before tax 50 Net tax credit 50 Profit for the period 100 Note. The finance cost includes lease interest. (ii) The details of the tangible non-current assets are: Cost N$000 Accumulated Carrying depreciation amount N$ 000 N$ 000 4400 15 800 5,400 10.600 20,200 At 30 September 2019 At 30 September 2020 16,000 During the year Tabba sold its factory for its fair value of N$12 million. At the date of sale it had a carrying amount of N$7.4 million based on a previous revaluation of N$8.6 million less depreciation of N$1.2 million since the revaluation. The profit on the sale of the factory has been included in operating profit. The surplus on the revaluation surplus related entirely to the factory. No other disposals of non-current assets were made during the year. Plant acquired under leases during the year was N$1.5 million and has been included within tangible non-current assets. Other purchases of plant during the year qualified for government grants of N$950,000 received in the year. Release of government grants has been credited to cost of 12 sales (iii) The insurance claim relates to flood damage to Tabba's inventories which occurred in September 2020. The original estimate has been revised during the year. The claim is expected to be settled in the near future Required: Prepare a statement of cash flows using the indirect method for Tabba for the year ended 30 September 2020 (25 marks) END OF QUESTION PAPER 13 QUESTION 4 (25 marks) The following draft financial statements relate to Tabba, a privately owned entity, 2019 2020 N$000 N$000 15,800 10,600 Tangible non-current assets (note (ii)) Current assets Inventories 1 850 2 550 2 600 3 100 1200 Trade receivables Insurance claim (note (iii)) Cash and bank 1 500 0 850 Total assets 18,600 21,450 6,000 6,000 Equity and liabilities Share capital ($1 each) Revaluation (note (ii) Retained earnings 0 1 600 2 550 850 Non-current liabilities 1700 2,000 Lease liability (note (ii)) 6% loan notes 0 800 0 4 000 10% loan notes 200 500 1,400 900 0 550 Deferred tax Government grants (note (ii)) Current liabilities Bank overdraft Trade payables Government grants (note (ID)) Lease liability (note (ii)) 4050 2950 600 400 900 800 11 100 1 200 Current tax payable Total equity and liabilities 18 600 21 450 The following information is relevant: Statement of profit or loss extract for the year ended 30 September 2020: N$000 Profit from operations 270 Finance cost (260) Interest income 40 Profit before tax 50 Net tax credit 50 Profit for the period 100 Note. The finance cost includes lease interest. (ii) The details of the tangible non-current assets are: Cost N$000 Accumulated Carrying depreciation amount N$ 000 N$ 000 4400 15 800 5,400 10.600 20,200 At 30 September 2019 At 30 September 2020 16,000 During the year Tabba sold its factory for its fair value of N$12 million. At the date of sale it had a carrying amount of N$7.4 million based on a previous revaluation of N$8.6 million less depreciation of N$1.2 million since the revaluation. The profit on the sale of the factory has been included in operating profit. The surplus on the revaluation surplus related entirely to the factory. No other disposals of non-current assets were made during the year. Plant acquired under leases during the year was N$1.5 million and has been included within tangible non-current assets. Other purchases of plant during the year qualified for government grants of N$950,000 received in the year. Release of government grants has been credited to cost of 12 sales (iii) The insurance claim relates to flood damage to Tabba's inventories which occurred in September 2020. The original estimate has been revised during the year. The claim is expected to be settled in the near future Required: Prepare a statement of cash flows using the indirect method for Tabba for the year ended 30 September 2020 (25 marks) END OF QUESTION PAPER 13