The following information relates to Laser Ltd for the year ended 31 August 2016:

Laser Ltd:

Statement of financial position as at 31 August 2016:

ASSETS	2016 ($)	2015($)
Non-current assets	33 690 000	28 350 000
land and buildings	24 100 000	18 500 000
machinery and equipment	10 520 000	8 900 000
accumulated depreciation
-machinery and equipment	(3 200 000)	(1 950 000)
vehicles net book value	2 270 000	2 550 000
investment at BNF bank	-	350 000
Current assets	628 520	512 000
inventory	342 000	360 000
accounts receivable	164 000	152 000
cash and cash equivalents	122 520
Total	34 318 520	28 862 000
Equity and Liabilities
Equity	25 507 824	20 486 300
Share capital	22 779 800	17 720 000
10% convertible preference shares	675 000	1 350 000
Share premium	285 000	570 000
Revaluation reserve-land and buildings	1 600 000	0
Retained earnings	168 024	846 300
Non-current liabilities
Mortgage bond	5 562 000	4 680 000
Current liabilities	3 248 696	3 695 700
Accounts payable	136 000	131 000
shareholders for dividends	2 021 467	2 450 550
Namra dividend withholding tax	356 729	432 450
rent income received in advance	22 000	24 000
bank overdraft		16 500
current portion of long term debt	618 000	520 000
Namra: income tax payable	94 500	121 200
Total	34 318 520	28 862 000

The following information was extracted from the accounting records of Laser Ltd in relation to the statement of profit or loss and other comprehensive income for the year ended 31 August 2016:

Details	2016 ($)
Revenue	13 600 000
Sales	13 612 000
Sales returns	(12 000)
cost of sales	6 838 000
opening inventory	360 000
purchases	6 820 000
less:closing inventory	(342 000)
gross income	6 762 000
other income	77 000
gain on sale of equipment	10 000
rent income	42 000
interest on investment	25 000
Expenses	(4 478 000)
interest on mortgage bond	620 000
loss on sale of vehicle	8 000
other operating expenses	3 850 000
profit before tax	2 361 000
tax	661 080
profit before other comprehensive income	1 699 920
revaluation of land and buildings	1 600 000
total comprehensive income	3 299 920

Additional Information

You can accept that the cash paid to suppliers and employees amounted to N$8 795 000.

Dividends

At the beginning of the financial year, it was approved that 60% of the dividend owing to shareholders on 31 August 2015, be paid through a capitalisation issue of ordinary shares at N$6.00 per share and the remainder in cash. The shareholders and the Namibian Revenue Agency (“NaMRA”), were both paid on 20 September 2015. Dividends declared at the end of August 2016, will be paid in October 2016.

Share capital

Authorised share capital
8 000 000 ordinary shares with no par value; and

1 000 000 10% convertible preference shares at $2.25 par value.

Issued share capital at 1 September 2015
3 000 000 ordinary shares; and 600 000 10% convertible preference shares issued at $3.20 per share.

At the beginning of September 2015, the company was given approval that 50% of the 10% convertible preference shares were to be converted to ordinary shares at a conversion price of $6 per share.

At the end of August 2016, an additional 395 000 ordinary shares were issued.

Property, plant and equipment

 During the year, equipment with a cost price of $200 000 and accumulated depreciation of $140 000 was sold. This equipment was replaced and $1 500 000 of equipment was purchased for expansion purposes and was installed in the new building.

 A vehicle with a cost of $160 000 and accumulated depreciation of $120 000 was sold during the year and replaced with a new vehicle costing $240 000.

 Depreciation is included in other operating expenses.

REQUIRED:

a) Prepare the statement of cash flows, using the direct method, including the reconciliation note, for Laser Ltd for the year ended 31 August 2016. Comparative figures are not required?