The statements of financial position of Maytix as at 31 October 2005 and 31 October 2004 are as follows:

The statement of comprehensive income of Maytix for the year ended 31 October 2005 is as follows:

Notes:

(i) The €˜Statement of changes in equity€™ disclosed a dividend paid figure of $1,500,000 during the year to 31 October 2005.

(ii) The non-current asset schedule revealed the following details:

Required:

(a) Prepare the Cash Flow Statement of Maytix for the year ended 31 October 2005. Use the format required by IAS 7 €˜Cash Flow Statements€™ and show operating cash flows use the €˜indirect method€™.

(b) Describe the additional information that would be included in a cash flow statement showing operating cash flows using the direct method and discuss the proposition that such disclosures be made compulsory under IAS7.

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2005 2004 $000 $000 $000 $000 Non-current assets: Property, at cost Plant and equipment, at cost Less accumulated depreciation 4,000 3,000 7,390 4,182 (1.450) (1,452) 9,940 5,730 Current assets: Inventory Trade receivables 5,901 4,520 2,639 2,233 Bank 8,540 1,007 7,760 18,480 13,490 Capital and reser ves: Ordinary shares Share premium Retained earnings 5,000 3,500 2,500 1,000 9,610 3,090 2,110 7,590 Non-current liabilities: 10% loan stock 4,750 3,750 Current labilities: Trade payables Taxation 1,237 1,700 550 450 2,333 Bank overdraft 4,1 20 2,150 18,480 13,490