Mika

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

Statements of financial position
31 December
20X4 20X3
$'000 $'000 $'000 $'000
Non-current assets
Cost or valuation 11,000 8,000
Accumulated depreciation (5,600) (4,800)
Carrying value 5,400 3,200
Current assets
Inventories 3,400 3,800
Receivables 3,800 2,900
Cash at bank 400 7,600 100 6,800
13,000 10,000
Equity and liabilities
Capital and reserves
Ordinary share capital 1,000 1,000
Revaluation surplus 1,500 1,000
Retained earnings 3,100 5,600 2,200 4,200
Non-current liabilities
10% Loan notes 3,000 2,000
Current liabilities
Trade payables 3,700 3,200
Income tax 700 4,400 600 3,800
13,000 10,000

Summarised statement of profit or loss for the year ended 31 December 20X4
$'000
Profit from operations 2,650
Finance cost (loan note interest) (300)
2,350
Income tax expense (700)
Net profit for the year 1,650

Notes
1 During the year non-current assets which had cost $800,000, with a carrying value of $350,000, were
sold for $500,000.
2 The revaluation surplus arose from the revaluation of some land that was not being depreciated.
3 The 20X3 income tax liability was settled at the amount provided for at 31 December 20X3.
4 The additional loan notes were issued on 1 January 20X4. Interest was paid on 30 June 20X4
and 31 December 20X4.
5 Dividends paid during the year amounted to $750,000.
Required
Prepare the company's statement of cash flows for the year ended 31 December 20X4, using the
indirect method, adopting the format in IAS 7 Statement of cash flows.
Hakuna Matata
The following information has been extracted from the draft financial statements of Hakuna Matata, a
limited liability company.
Hakuna Matata
STATEMENTS OF FINANCIAL POSITION AS AT 31 MAY
20X5 20X4
$'000 $'000 $'000 $'000
Non-current assets 4,600 2,700
Current assets
Inventory 580 500
Trade receivables 360 230
Bank 0 170
940 900
Total assets 5,540 3,600
Equity and liabilities
Equity
Ordinary share capital 3,500 2,370
Share premium 300 150
Retained earnings 1,052 470
4,852 2,990
Non-current liabilities
10% Loan note
(redeemable 31 May 20X5) 0 100
Current liabilities
Trade payables 450 365
Taxation 180 145
Bank overdraft 58 0
688 510
5,540 3,600
Additional information
(a) The statement of profit or loss for the year ended 31 May 20X5 shows the following.
$'000
Operating profit 1,042
Interest payable (10)
Profit before taxation 1,032
Taxation (180)
Profit for financial year 852

(b) During the year dividends paid were $270,000.

(c) Profit before taxation had been arrived at after charging $700,000 for depreciation on non-
current assets.
(d) During the year non-current assets with a net book value of $200,000 were sold for $180,000.
Required
Prepare a statement of cash flows for Hakuna Matata for the year ended 31 May 20X5 in accordance
with IAS 7 Statement of cash flows, using the indirect method
Maji Mazuri
Maji Mazuri is preparing its statement of cash flows for the year ended 31 October 20X7. You have been
presented with the following information.
Maji Mazuri
STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20X7
$'000
Profit from operations 15,730
Finance cost (730)
Profit before tax 15,000
Taxation (4,350)
Profit for the year 10,650
STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER
20X7 20X6
$'000 $'000 $'000 $'000
Non-current assets 44,282 26,574
Current assets
Inventory 3,560 9,635
Trade receivables 6,405 4,542
Cash 559 1,063
10,524 15,240
Total assets 54,806 41,814
Equity and liabilities
Equity
Ordinary share capital 16,000 15,000
Share premium account 3,365 2,496
Retained earnings 15,629 6,465
34,994 23,961
Non-current liabilities
9% loan notes 8,000 10,300
Current liabilities
Bank overdraft 1,230 429
Trade payables 7,442 4,264
Interest payable 120 100
Taxation 3,020 2,760
11,812 7,553
Total equity and liabilities 54,806 41,814
Additional information
(a) During the year dividends paid were $1,486,000.
(b) Summary schedule of changes to non-current assets during 20X7.
Accumulated Carrying
Cost depreciation value
$'000 $'000 $'000
Balance b/f 33,218 6,644 26,574
Additions 24,340 24,340
Disposals (2,964) (990) (1,974)
Depreciation 4,658 (4,658)
Balance c/f 54,594 10,312 44,282
(c) The total proceeds from the disposal of non-current assets were $2,694,000.
Required
Prepare a statement of cash flows for Maji Mazuri for the year ended 31 October 20X7 .