The following are the abridged consolidated financial statements of

Mango Ltd and its subsidiary for the year ended $30$ June $20$x$9.$

MANGO LTD

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT $30$

JUNE $20$X$9$

$20$X$920$X$8$

$ $

ASSETS

Non$-$current assets $10700090000$

Plant at carrying amount $9000070000$

Listed investment $1000010000$

Goodwill $700010000$

Current assets $8847267080$

Inventory $4260030000$

Debtors $3327229080$

Bank $126008000$

Total assets $195472157080$

$20$X$920$X$8$

EQUITY AND LIABILITIES $ $

Equity attributable to equity holders of the

parent $8200070000$

Share capital $1000010000$

Retained earnings $7200060000$

Non$-$controlling interest $8400-$

Total liabilities $10507287080$

Non$-$current liabilities $2000030000$

Interest bearing borrowings $2000030000$

Current liabilities $8507257080$

Creditors $5437034131$

Zimra $800012000$

VAT payable $21023349$

Dividends payable $125005000$

Bank overdraft $81002600$

Total equity and liabilities $195472157080$

MANGO LTD

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR

THE YEAR ENDED $30$ JUNE $20$X$920$X$920$X$8$

$ $

Revenue $375000360000$

Cost of sales $(263000)(250000)$

Gross profit $112000110000$

Other income $103004300$

Distribution costs $(5000)(5000)$

Administrative expenses $(35000)(35000)$

Other expenses $(21850)(18300)$

Finance costs $(3250)(4500)$

Profit before tax $5720051500$

Income tax expenses $(21000)(24000)$

Profit for the year $3620027500$

Other comprehensive income $--$

Total comprehensive income for the year $3620027500$

Attributable to:

Owners of the parent $3200027500$

Non$-$controlling interest $4200-$

$3620027500$

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR

ENDED $30$ JUNE $20$X$9$

Share Retained Total Non Total

Capital earnings controlling equity

Interest

$ $ $ $ $

Balance at $30$ June $20$x$7100004000050000-50000$

Total comprehensive

income for the year $-2750027500-27500$

Dividends $-(7500)(7500)-(7500)$

Balance of $30/6/20$x$8100006000070000-70000$

Portion of subsidiary

sold to minorities $---60006000$

Total comprehensive

income for the year $-3200032000420036200$

Dividends $-(20000)(20000)(1800)(21$

$800)$

Balance at $30/6/20$x$9100007200082000840090400$

Additional information:

$1.$ Mango Ltd sold $30\%$ of its shares in its wholly owned subsidiary on $31$

December $20$x$8.$ The profit on the sale of these shares amounted to $$4800$ and is included in other income.

$2.$ The subsidiary paid a dividend of $$6000$ on $15$ June $20$x$9(20$x$8$

$$4500).$

$3.$ The subsidiary$$s net assets at $31$ December $20$x$8$ were as follows:$-$

$

Plant at carrying amount $15000$

Cash at bank $600$

Inventory $3000$

Debtors $9400$

Creditors $(8000)$

$20000$

$4.$ Depreciation of $$20000$ was written off in the consolidated financial

statements for the year $(20$x$8-$ $$18000).$

$5.$ The loan bears interest at $15\%$ per annum that must be paid over on

$31$ August each year. The amount accrued is included in creditors. The

capital repayment was made on $31$ August $20$x$8.$ The loan of $$30000$

was obtained in $20$x$6.$

$6.45\%$ of the amount spent on plant was in respect of additions to the

existing facilities and would enable parts previously purchased to be

manufactured.

$7.$ There are no temporary differences.

$8.$ Investment income $($included with other income$)$ consists of dividends

received from the listed investment amounting to $$5000(20$x$6$ :$$4000)$

and interest received amounting to $$50/0(20$x$8$ $$300).$ For both

financial years the dividends were only received in cash during the

following financial year and was thus included in debtors for the

respective years.

$9.$ Secondary taxation on companies amount to $$2100(20$x$8$ :$$438)$ is

included in taxation paid and was fully paid during the year in which

it was provided for.

$10.$ The bank overdraft is repayable on demand.

$11.$ Assume a VAT rate of $14\%$ and that there were no exempt or zero

rated supplies.

$12.$ Mango Ltd has determined that the fair value of goodwill is still

above its recoverable amount and no adjustment is therefore needed.Required Draft the consolidated statement of cash flows of Mango Ltd for the year

ended $30$ June $20$x$9$ on the direct method in terms of IAS $7.$ VAT should be

accounted for on a net basis. Comparative figures are not required