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QUESTION $3[25$ MARKS$]$

You have been provided with financial statements for Kanye and company for year $2023.$ All

figures are in Botswana Pula.

Income statement for the year ending $31$ December $2023$

Revenue $1356000$

Raw materials consumed $140000$

Staff costs $188000$

Depreciation $236000$

Loss on disposal of assets $36000(600000)$

Operating profit $756000$

Interest payable $(56000)$

Profit before tax $700000$

Taxation $(248000)$

Profit for the period $452000$

Statement of Financial Position as at $31$ December $2023$

$20232022$

Non$-$current assets

Cost $31920003120000$

Depreciation $(636000)(448000)$

Current assets

Inventory $4800040000$

Receivables $152000116000$

Bank $96000112000$

Total assets $28520002940000$

Equity and Liabilities

Equity:

Share capital

Share premium

Retained earnings

$720000$

$72000$

$1432000$

$680000$

$48000$

$1028000$

Non current Liabilities

Long term Loans $4000001000000$

Current Liabilities

Payables

Taxation

$24000$

$204000$

$12000$

$172000$

Total Equity and Liabilities $28520002940000$

Notes:

$$ Dividends paid amounted to P$132000$

DIPLOMA Assignment

July $$ December BBF$621$ Business Finance

$$ BOU $2024$ Page $5$ of $5$

$$ During the year the company paid P$180000$ for a new piece of machinery

Required

Prepare a cashflow statement for the year ended $31$ December $2023$ according to the requirements

of International Accounting Standard $7,$ using the indirect method. $(25$ marks$)$

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