SHABNUM CO STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X2

$'000

Revenue 2,553

Cost of sales (1,814)

Gross profit 739

Distribution costs (125)

Administrative expenses (264)

Operating profit 350

Interest received 25

Interest paid (75)

Profit before taxation 300

Taxation (140)

Profit for the year 160

SHABNUM COSTATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER

20X2 20X1

$'000 $'000

Assets

Non-current assets

Property, plant and equipment 380 305

Intangible assets 250 200

Investments 25

Current assets

Inventories 150 102

Receivables 390 315

Short-term investments 50

Cash in hand 2 1

Total assets 1,222 948

Equity and liabilities

Equity

Share capital ($1 ordinary shares) 200 150

Share premium account 160 150

Revaluation surplus 100 91

Retained earnings 260 180

Non-current liabilities

Loan 170 50

Current liabilities

Trade payables 127 119

Bank overdraft 85 98

Taxation 120 110

Total equity and liabilities 1,222 948

The following information is available.

(a) The proceeds of the sale of non-current asset investments amounted to $30,000.

(b) Fixtures and fittings, with an original cost of $85,000 and a carrying amount of $45,000, were sold for $32,000 during the year.

(c) The following information relates to property, plant and equipment.

31.12.20X2 31.12.20X1

$'000 $'000

Cost 720 595

Accumulated depreciation 340 290

Carrying amount (book value) 380 305

(d) 50,000 $1 ordinary shares were issued during the year at a premium of 20c per share.

(e) Dividends totalling $80,000 were paid during the year.

*Prepare the statement of cash flows for the year to 31 December 20X2 using the

Indirect method, show the note to the solutions figures.