Set out below are the summarised balance sheets of TOSHA Ltd. For the years ended 31 December 2003 and 2004. And the profit and loss account for the year ended 31 December 2004:

Balance sheets as at 31 December

2003 2004

Sh. 000 Sh. 000 Sh. 000 Sh. 000

Ordinary share capital

14,800

18,800

Revaluation reserve

2,500

6,500

Revenue reserves

21,120

27,780

Share premium

3,000

4,800

Loans

8,400

5,200

49,820

63,080

Current liabilities

Trade creditors 3,040

2,820

Proposed dividends 2,800

3,400

Taxation 9,400

12,040

Bank overdraft - 15,240 15,320 33,580

65,060

96,660

2003 2004

Sh. 000 Sh. 000 Sh. 000 Sh. 000

Fixed assets

Freehold land

18,000

22,000

Plant and machinery:

Cost 54,000

76,620

Accumulated depreciation (14,960)

(22,500)

39,040

54,120

Current assets:

Stock 4,060

16,860

Debtors 2,940

3,680

Cash at bank 1,020 8,020 - 20,540

65,060

96,660

Profit and loss account for the year ended 31 December 2004:

Sh. 000 Sh. 000

Profit before tax

23,900

Corporation tax

(12,040)

Profit after tax

11,860

Ordinary dividend:

Paid 1,800

Proposed 3,400 (5,200)

6,660

Additional information: During the year ended 31 December 2004, TOSHA Ltd. obtained a five-year bank loan amounting to sh.1,300,000.

Depreciation charged on plant and machinery during the year ended 31 December 2004 amounted to Sh.8,020,000.

During the year ended 31 December 2004, plant which originally cost Sh.1,380,000 was disposed of for Sh.820,000.

Required: Cash flow statement in compliance with IAS 7 (Cash Flow Statements). For the year ended 31 December 2004. (16 marks)