TWO (20 marks in total...1 part to the question) Shown below is an extract from the comparative statements of financial position and statement of profit or loss of Hill Limited for the year ended 30 June 2015: Hill Ltd Statement of Financial Position as at 30 June 2015 30 June 2015 30 June 2014 Current assets $ S Cash Trade receivables 327 000 180 000 306 000 276 000 Inventory 240 000 150 000 873 000 606 000 Non-current assets Land 93.000 75.000 Equipment 780 000 690 000 Accumulated depreciation equipment (180 000) (135 000) 693 000 630 000 TOTAL ASSETS 1 566 000 1236 000 Current liabilities Accounts payable 232 500 225 000 Interest payable 24 000 18.000 Accrued expenses 64 500 67 500 Current tax liability 51 000 45.000 Provision for employee benefits 63 000 57.000 Dividend payable 90 000 525 000 412 500 Non-current liabilities Borrowings 157 500 142 500 Deferred tax liability 58 500 87 000 216.000 229 500 TOTAL LIABILITIES 741 000 642 000 570 000 525 000 Share capital Revaluation surplus 30 000 18.000 225 000 Retained earnings 825 000 TOTAL LIABILITIES & EQUITY 1 566 000 A/c m = 031 sales DD 51.000 594 000 1 236 000 -213 Accoudo OBA other 26300 Latent 6000 Hill Ltd Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2015 S Sales Cost of sales Gross profit Gain on sale of equipment Interest income Administrative costs Distribution costs Interest expense Other costs Profit before tax 5370 000 (4 296 000) 1 074 000 24-000 6.000 (277 500) (240 000) (12 000) (60 000) Income tax expense Profit for the year Other comprehensive income Gain on asset revaluation (net of tax) Total comprehensive income Additional information: 514-500 (154-500) 360 000 12 000 372 000 1. Management decided to display interest received under 'investing activities', interest paid under 'operating activities' and dividends paid under 'financing activities'. 2. Accounts payable at 30 June 2015 include $33 000 in respect of equipment acquisitions. 3. There were borrowing repayments of $45 000 during the year. 4. Equipment with a carrying amount of $90 000 (cost $127 500, accumulated depreciation $37 500) was sold for $114 000 5. The increase to the revaluation surplus is net of deferred tax of $6 000. 6. The increase in share capital of $45 '000 arose from the company's dividend reinvestment scheme. 7. Dividends declared out of profits for the year were: interim dividend $96 000, final dividend $90 000. Required: Prepare a Statement of Cash Flows for the year ended 30 June 2015 for Hill Ltd in accordance with IAS 7 using the direct method. (Show all your workings). (20 marks)