Shs '000' Return outwards of damaged timber 10.500 Discount received on bulk timber purchases 5.550 Discount received on furniture for resale 2.650 Wages: Direct 4.620 Indirect 6.540 Saw mills 90.000 Loose tools 50.000 Lighting & power 12.000 Salaries to saw mill operators 3.600 Consumables (e.g. nails. vanish) 8.600 Rent of workshop 6.000 Insurance of factory non-current assets 2.500 General factory expenses 5.880 Capital 314.402 Accounts receivable 64.200 Sales 610.300 Accounts payable 84,900 Returns of furniture damaged 10.300 Cash 8. bank balances 180,000 Retained earnings 164,158 Additional information: 1 Closing inventory as at 30 June. 2017 was as follows: Shs '000' Inventory of timber 140.500 Work in progress 25,220 Finished goods (furniture) 130,500 2 Depreciation of non-current asset is charged at 20% on cost. 3 Inventory of furniture bought from Dubai Shs 20,000,000 (cost) had a realisable value Shs 18,000,000. Shs 20,000,000 was included in the closing inventory of finished goods. 4 90% of lighting 8. power relates to factory. 5 Okemwa. the proprietor of QUFUL, took a dining table worth Shs 1,800,000 for home use. This was not recorded in the DOORS Of account. 2018 2017 Shs '000' Shs '000' Current liabilities: Accounts payable 35,550 43,000 Taxation 17,000 13,500 Dividends 25,000 18,000 Bank overdraft 42.600 596,350 455,200 Additional information: 1 During the year ended 31 December 2018, a non-current asset which cost Shs 50,000,000 and with net book value Shs 35,000,000 was sold for Shs 18,000,000 2 The increase in share capital was a result of issue of shares which were paid for fully. Required: Prepare, for Mwaka Lid, for the year ended 31 December 2018, a statement of cash flows using the indirect method, in accordance with IAS 7: Statement of Cash flows (Hint: Show all the workings) (20 marks) (Total 20 marks) Question 2 The following balances were extracted from the assets register of DISCLA Ltd as at 31 December, 2015. The company's financial year ends on 31 December. Cost Accumulated depreciation Shs '000' Shs '000' Machinery 350,000 126,000 Motor vehicles 90,000 27,000Question 1 You have been provided with the following financial statements for Mwaka Ltd for the year ended 31 December, 2018: Statement of profit or loss: Shs '000' Sales revenue 377,900 Cost of sales (220,700) Gross profit 157,200 Investment income received 23.000 Administrative expenses (35,700) Distribution expenses (43,900) Operating profit 100,600 Interest paid (17.000) Taxation (17.500) Dividends (20.000) Net prot 45.100 Statements of financial position: 2018 2017 Shs '000' Shs '000' Assets Non-current assets 475.000 346,000 Accumulated depreciation (122,250) (51,900) Net book value 352.750 294,100 Investments 60,000 Current assets: Inventory 138.000 95.000 Accounts receivable 45,600 35.500 Cash and bank - 30.600 Total assets: M M Equity and liabilities: Equy Ordinary shares of Shs 4.000 each 300.000 260.000 Share premium 34,000 27,000 Retained profits 84,800 38.700 Non-current liabilities: Bank loan 57,400 55.000 Debits Credits Shs '000' Shs '000' Discounts 450 5,600 Retained earnings 60,240 Drawings 3.960 Provision for doubtful debts 4.000 Cash 4.800 Bank 50,950 Closing inventory 55,500 Burnt stock 5,500 macaw Additional information: 1 Utilities Shs 500.000 relates to the year ending 31 March. 2020. 2 Accrued salaries amounted to Shs 1,800,000. 3 The provision for doubtful debts is to be reduced to Shs 3,000,000. 4 The company charges depreciation on non-current assets at 10% per annum on cost. 5 The company acquired a bank loan Shs 20.000.000 at the year-end but this transaction was not recorded anywhere in the books of account. Required: Prepare. for Jaia Trading Co. Ltd., for the year ended 31 March 2019, a statement of: (a) profit or loss. (8 marks) (b) financial position. (12 marks) (Total 20 marks) Question 4 Quality Furniture Limited (0UFUL) produces wood products but also imports finished furniture from Dubai to increase on its stock. On 30 June 2017, the company had the following balances: Shs '000' Balances on 1 July 2016: Inventory of timber 36.400 Work in progress 24.840 Finished goods (furniture) 215.000 Transactions during the year: Purchase of timber 350,600 Purchase of furniture for resale 120.000 Carriage inwards on timber 800 Carriage inwards furniture for resale 580