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QUESTION 4 (25 MARKS) The financial statements of Armstong Ltd, a wholesaler of electronic products, are given below: Income statement for the year ended 31 December 2018 Revenue Cost of sales Gross profit Operating expenses Profit from operations Finance costs Profit before taxation Taxation Profit for the year $'000 166,860 (141 752) 25,108 (20.892) 4,216 (1,618) 2,598 (1.344) 1,254 Dividend paid 1.000 Statement of financial position as at 31 December: 2018 $'000 Non-current assets Property, plant & equipment Invesments Intagible assets 2017 $'000 32,208 2,878 35,086 27,836 200 3,530 31,566 Current assets Inventories Receivables Cash in hand 21,862 8,858 7,316 38,036 18,760 7.784 15,036 41,580 Total assets 73,122 73,146 Equity Equity shares of $1 each Share premium Revaluation reserves Retained earnings 900 3,200 10,000 17,902 32,002 800 3,000 8,000 17,648 29,448 Non-current liabilities 7% Loan notes 16,354 3,928 38,324 Current liabilities Trade payables Overdraft Taxation Interest 18,598 4,246 600 1,322 24,766 500 946 39,770 73,122 73,146 ADDITIONAL INFORMATION 1 An item of plant with a carrying amount of $ 1,930,000 (at cost $ 2,300,000) was sold at a loss of $ 100,000 during the year. 2. The details of Property, plant and equipment are as follows: Net book Cost value $'000 $'000 As at 31 December 2018 35,208 32,208 As at 31 December 2017 29,836 27,836 The revaluation reserve relates only to the assets of Property, plant and equipment. 3. 4. The non-current asset investments were disposed during the year for $225,000. 5. There has been an issue of ordinary shares at a premium of $ 2 per share issued for cash during the year. 6. There were no acquisitions and disposal of intangible assets during the year. REQUIRED Prepare, using the indirect method, a statement of cash flows for Armstrong Ltd for the year to 31 December 2018 in accordance with IAS 7 Statement of Cash Flows