Question

The following information is available for CANDY GH, a limited liability company: Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31st December 2016 GH¢000 Revenue 7,659 Cost of sales (5,442) Gross profit 2,217 Operating expenses (1,167) Operating profit 1,050 Interest expenses (150) Operating profit before tax 900 Tax expense (420) Net profit after tax transferred to reserves 480 Statement of Financial Position as at 31st December: Non-current assets 2016 GH¢000 2015 GH¢000 Property, plant, and equipment 2,160 1,785 Accumulated depreciation (1,020) (870) Carrying value 1,140 915 Intangible assets 750 600 Investment property - 75 Total Non-current assets 1,890 1,590 Current assets Inventory 450 306 Trade receivables 1,170 945 Cash and cash equivalents 156 3 Total current assets 1,776 1,254 Total assets 3,666 2,844 Equity Equity share capital (GH¢2 par value) 1,380 1,173 Retained earnings 780 540 Total equity 2,160 1,713 Non-current liabilities 12% debentures 510 150 Current liabilities Trade payables 381 357 Bank overdraft 255 294 Taxation 360 330 Total current liabilities 996 981 Total equity and liabilities 3,666 2,844 Additional information: Equipment which had cost GH¢255,000 and with a net book value of GH¢135,000 was sold for GH¢96,000 during the year. The cash proceeds of the sale of investment properties amounted to GH¢90,000. Dividends paid during the year amounted to GH¢240,000. Required: Prepare the company's statement of cash flows for the year ended 31st December 2016, using the indirect method, adopting the format in IAS 7 Statement of cash flows.

          The following information is available for CANDY GH, a limited liability company:

Statement of Profit or Loss and Other Comprehensive Income for the Year Ended 31st December 2016

GH¢000
Revenue
7,659
Cost of sales
(5,442)
Gross profit
2,217
Operating expenses
(1,167)
Operating profit
1,050
Interest expenses
(150)
Operating profit before tax
900
Tax expense
(420)
Net profit after tax transferred to reserves
480

Statement of Financial Position as at 31st December:

Non-current assets
2016
GH¢000
2015
GH¢000
Property, plant, and equipment
2,160
1,785
Accumulated depreciation
(1,020)
(870)
Carrying value
1,140
915
Intangible assets
750
600
Investment property
-
75
Total Non-current assets
1,890
1,590

Current assets
Inventory
450
306
Trade receivables
1,170
945
Cash and cash equivalents
156
3
Total current assets
1,776
1,254
Total assets
3,666
2,844

Equity
Equity share capital (GH¢2 par value)
1,380
1,173
Retained earnings
780
540
Total equity
2,160
1,713

Non-current liabilities
12% debentures
510
150

Current liabilities
Trade payables
381
357
Bank overdraft
255
294
Taxation
360
330
Total current liabilities
996
981

Total equity and liabilities
3,666
2,844

Additional information: 

Equipment which had cost GH¢255,000 and with a net book value of GH¢135,000 was sold for GH¢96,000 during the year.

The cash proceeds of the sale of investment properties amounted to GH¢90,000.

Dividends paid during the year amounted to GH¢240,000.

Required:

Prepare the company's statement of cash flows for the year ended 31st December 2016, using the indirect method, adopting the format in IAS 7 Statement of cash flows.

Added by Susan F.

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