The financial statements of AG are given below: Balance sheets as at 31 March 2019 31 March 2018 Sh.000 Sh.000 Sh.000 Sh.000 4,500 370 4,800 400 4,870 5,200 Non-current assets: Plant, property and equipment Development expenditure Current assets: Inventories Trade receivables Cash and cash equivalents Total assets 685 515 575 420 552 1.752 232 1.227 6.622 5,427 250 200 Equity and liabilities Equity: Share capital 2,600 1,900 Share premium account 750 400 Revaluation reserve 425 300 Retained earnings N. 1.430 1.415 Total equity 5.205 4.015 Non-current liabilities: cum 10% loan notes 0 1,000 5% loan notes 5 500 500 wered lax Deferred tax Total non-current liabilities: - 750 1,700 Current liabilities: Trade payables 480 ade 350 Income tax 80 190 Accrued expenses 107 172 Total current liabilities: 667 712 Total equity and liabilities 6.622 6,427 Income statement for the year ended 31 March 2019 Sh.000 Sh.000 Revenue 7,500 Cost of sales 4.000 Gross profit 3,500 Distribution costs 900 Administrative expenses 2.300 3.200 Profit from operations 300 Finance costs 45 Profit before tax 255 Income tax expense 140 Profit for the period IIS wa A. Additional information: (i) On 1 April 2018, AG issued 1,400,000 sh.0-50 ordinary shares at a premium of 50%. wasio (ii) On 1 May 2018, AG purchased and cancelled all its 10% loan notes at par. (ii) Non-current tangible assets include properties which were revalued upwards by sh.125,000 during the year. (iv) Non-current tangible assets disposed of in the year had a net book value of sh.75,000; cash received on disposal was sh.98,000. Any gain or loss on disposal has been included under cost of sales, (v) Cost of sales includes sh. 80,000 during the year. (vi) Depreciation charged for the year was sh.720,000, (vii) The accrued expenses balance includes interest payable of sh.87,000 at 31 March 2018 and sh. 12,000 at 31 March 2019 (viii) The income tax expenses for the year to 31 March 2019 is made up as follows: sh.000 Corporate income tax 90 Deferred tax 50 140 (ix) Dividends paid during the year were sh.100,000. Required: Prepare a cash flow statement, using the indirect method, for AG for the year ended 31 March 2019, in accordance with IAS 7 Cash Flow Statements. (20 marks) The financial statements of AG are given below: Balance sheets as at 31 March 2019 31 March 2018 Sh.000 Sh.000 Sh.000 Sh.000 4,500 370 4,800 400 4,870 5,200 Non-current assets: Plant, property and equipment Development expenditure Current assets: Inventories Trade receivables Cash and cash equivalents Total assets 685 515 575 420 552 1.752 232 1.227 6.622 5,427 250 200 Equity and liabilities Equity: Share capital 2,600 1,900 Share premium account 750 400 Revaluation reserve 425 300 Retained earnings N. 1.430 1.415 Total equity 5.205 4.015 Non-current liabilities: cum 10% loan notes 0 1,000 5% loan notes 5 500 500 wered lax Deferred tax Total non-current liabilities: - 750 1,700 Current liabilities: Trade payables 480 ade 350 Income tax 80 190 Accrued expenses 107 172 Total current liabilities: 667 712 Total equity and liabilities 6.622 6,427 Income statement for the year ended 31 March 2019 Sh.000 Sh.000 Revenue 7,500 Cost of sales 4.000 Gross profit 3,500 Distribution costs 900 Administrative expenses 2.300 3.200 Profit from operations 300 Finance costs 45 Profit before tax 255 Income tax expense 140 Profit for the period IIS wa A. Additional information: (i) On 1 April 2018, AG issued 1,400,000 sh.0-50 ordinary shares at a premium of 50%. wasio (ii) On 1 May 2018, AG purchased and cancelled all its 10% loan notes at par. (ii) Non-current tangible assets include properties which were revalued upwards by sh.125,000 during the year. (iv) Non-current tangible assets disposed of in the year had a net book value of sh.75,000; cash received on disposal was sh.98,000. Any gain or loss on disposal has been included under cost of sales, (v) Cost of sales includes sh. 80,000 during the year. (vi) Depreciation charged for the year was sh.720,000, (vii) The accrued expenses balance includes interest payable of sh.87,000 at 31 March 2018 and sh. 12,000 at 31 March 2019 (viii) The income tax expenses for the year to 31 March 2019 is made up as follows: sh.000 Corporate income tax 90 Deferred tax 50 140 (ix) Dividends paid during the year were sh.100,000. Required: Prepare a cash flow statement, using the indirect method, for AG for the year ended 31 March 2019, in accordance with IAS 7 Cash Flow Statements. (20 marks)