ADVANCED FINANCIAL ACCOUNTING 1 Assignment 4 1. Below are the statements of financial position of Dickson as at 31 March 20X8 and 31 March 20X7, together with the statement of profit or loss and other...

Extracted text: ADVANCED FINANCIAL ACCOUNTING 1 Assignment 4 1. Below are the statements of financial position of Dickson as at 31 March 20X8 and 31 March 20X7, together with the statement of profit or loss and other comprehensive income for the year ended 31 March 20X8. 20X8 20X7 $'00 $'000 Non-current assets Property, plant and equipment Development expenditure 925 737 290 160 1,215 897 Current assets Inventories 360 227 Trade receivables 274 324 Investments 143 46 Cash 29 2,021 117 1,611 Total assets Equity Share capital - $1 ordinary shares 500 400 100 Share premium Revaluation surplus 350 160 60 Retained earnings 229 1,239 _255 815 Non-current liabilities 6% debentures 150 100 Finance lease liabilities 100 80 Deferred tax 48 45 Current liabilities Trade payables 274 352 Finance lease liabilities 17 12 Current tax 56 153 Debenture interest 5 Bank overdraft 132 54 1,611 Total equity and liabilities 2,021 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME S'000 Revenue 1,476 Cost of sales (962) Gross profit Other expenses 514 (157) Finance costs (15) Profit before tax 342 Income tax expense (162) Profit for the year 180 Other comprehensive income: Gain on revaluation of property, plant and equipment Total comprehensive income for the year 100 280 Notes (i) During 20X8, amortisation of $60,000 was charged on development projects. (ii) During 20X8 items of property, plant and equipment with a carrying amount of $103,000 were sold for $110,000. Profit on sale was netted off against 'other expenses'. Depreciation charged in the year on property, plant and equipment totalled $57,000. Dickson purchased $56,000 of property, plant and equipment by means of finance leases, payments being made in arrears on the last day of each accounting period. (iii) The current asset investments are government bonds and management has decided to class them as cash equivalents. (iv) The new debentures were issued on 1 April 20X7. Finance cost includes debenture interest and finance lease finance charges only. (v) During the year Dickson made a 1 for 8 bonus issue, capitalising its retained earnings, followed by a rights issue. Required: Prepare a statement of cash flows for Dickson in accordance with IAS 7 using the indirect method.