Solution: Am Dec 31, 2018 Amount (2000) 1,030 600 1,300 Tilustration 14.9 The following are the summarised balance sheets of Piyali Limited as at December 31, 2018 and December 31, 2019: Balance Sheet of Piyall Limited Dec. 31, 2019 Amount R'000) Assets 2,000 Plant and equipment 1,000 1.000 Land and buildings 560 Short-term investments 2,200 2,500 Sundry debtors 1,500 Inventories 100 Interest receivable 300 Cash in hand 1,290 Cash at bank 8,950 Liabilities 2,600 Contributed capital 2,200 660 Reserve and surplus 100 2,000 15% debentures 1.800 Deferred tax liability 600 500 Sundry creditors 400 600 w Wages outstanding 40 20 wa Income tax payable 400 450 Accumulated depreciation on property, plant and equipment 900 800 Accumulated depreciation on land and buildings 550 500 Provision for dividend 800 800 8,950 7,770 60 500 780 7,770 Statement of Profit and Loss of PL for Year Ending December 31, 2019 Sales revenue Less: Cost of sales Gross profit Less: Depreciation Selling and administration expenses Interest expense Add: Interest income Dividend income Insurance settlement received Profit on sale of equipment Profit before tax Less: Income tax expenses Net profit Amount ('000) 45,500 38,920 6,580 570 3,200 300 80 100 10 20 2,720 600 2.120 The following additional information is provided by PL (amount, T'000) for the year 2018 (i) 15% debentures of 200 were issued. (ii ) Equipment costing 7500 having accumulated depreciation of +420 was sold for (iii) 31,560 (including interim dividend of 760) were distributed as dividend. Assume that there is no dividend tax. (iv) All sales and purchases were made on credit basis. Required: Prepare a statement of cash flows of PL for 2019 using the indirect method