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The Following are extracts from the financial statements of Wewe Ltd. As at 31st March:
| 2018 | 2017 |
| Shs 000 | Shs 000 | Shs 000 | Shs 000 |
Fixed assets: | | 2,800 | | 2,900 |
Goodwill | | 16,800 | | 12,000 |
Freehold Land & building | | 5,860 | | 6,350 |
Plant & Machinery (NBV) | | 3,600 | | 3,750 |
Investment at cost | | 29,060 | | 25,000 |
| | | | |
| | | | |
Current Assets: | 10,050 | | 8,700 | |
Stock | 6,140 | | 7,800 | |
Accounts receivable | 1,710 | | 840 | |
Investment | 200 | | 430 | |
Cash at hand & bank | 18,100 | | 17,770 | |
| | | | |
Current Liabilities: | (2,390) | | (6,540) | |
Bank overdraft | (5,850) | | (5,250) | |
Account Payable | (450) | | (380) | |
Proposed dividends | (820) | | (600) | |
Taxation | (9,510) | | (12,770) | |
| | 8,590 | | 5,000 |
Net current assets | | 37,650 | | 3,000 |
15% Debentures | | (7,500) | | (9,000) |
| | 30,150 | | 21,00 |
Capital and Reserves: | | | | |
Authorized, issued & paid Sh. 10 | | 18,000 | | 15,000 |
Ordinary shares | | 1,500 | | 750 |
Share premium | | 4,500 | | - |
Revaluation reserve | | 6,150 | | 5,250 |
Retained Profit | | 30,150 | | 21,000 |
The profit and loss appropriation account for the year ended 31 March 2018 is given below:
| Shs. 000 | Shs. 000 |
Net profit before tax | | 2,400 |
Less: Corporation tax | | 900 |
Profit after tax | | 1,500 |
Dividends: | | |
Interim (Paid) | 150 | |
Proposed (Paid) | 450 | 600 |
| | 900 |
The following additional information is provided:
- Profit for the year is arrived at after charging:
| Shs. 000 |
Depreciation on plant & machinery | 1,150 |
Goodwill amortization | 420 |
- During the year, plant with a net book value of Sh. 750,000 was sold for Sh, 1,470,000. The plant had originally cost Sh. 3,000.000.
- The investments portfolio was reduced by selling one block of shares at a profit of Sh. 160,000.
Required:
Cash flow statement in accordance with IAS 7.
Answer & Explanation
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