You have been provided with the following extracts of the financial statements of ProvisionLtd for the year ended 31 December 2018.Statement of financial position for the year ended 31 December 2018Non-current assetsCurrent assetsInventoriesTrade receivablesCashTotal assetsEquity and LiabilitiesShareholders equity andreservesContributed equity (ordinaryshares)Retained incomePreference shares -Non-current liabilitiesLoanCurrent liabilitiesTrade payablesDividends payableInland RevenueTotal equity and liabilitiesNote1SSSSSS$SSSSSSSSSS2018328,000 S498,000 S170,000 S90,000 $62,000 $ 55,00018,000 $5,000$201780,000 $48,000 $12,000 $20,000 $286,000170,000110,000418,000 $ 290,000170,000 $198,000 $50,000 $SS456,000110,000130,00050,000100,00066,00044,00010,00012,000498,000 S 456,000Extract from the statement of profit and loss for the year ended 31 December 2018:Gross revenueS375,000Cost of sales$217,000S158,000Net profit before taxationTaxation73,000Net profit for the year85,000 Statement of changes in equity for the year ended 31 December 2018Ordinary shares Preference shares Retained income TotalBalance 31 December 2017 $ 110,000 $130,000 $ 290,00050,000 $Changes in equity for 2018:Net profit for the yearDividends paidPreference dividendsNew share issueBalance 31 December 2018 $Additional information:1. Non-current assets$Land and buildingsPlant and machineryCost60,000170,00020182017$ 180,000 $140,000190,000$ 218,000 $$ 398,000 $ 330,000$2018$$70,000$ 70,000-$Accumulated depreciation50,000 $2017$44,000$ 44,00085,000 $7,000 -$10,000 -$198,000 $ 418,000$5,0007,00010,0002018$180,000$ 148,000$328,000Carrying value• During the year, 60 000 ordinary shares were issued at $ 1 per share.• Interest paid amounted to $ 5 000 and investment income was $ 2 000.2017$ 140,000$ 146,000$ 286,000• A small land area costing $ 25 000 was sold for a profit of $ 8 000 on 30 March 2018.• Plant and machinery costing $ 40 000 was acquired.• Plant and machinery with a book value of $ 8 000 was sold at a loss of $ 4 000.REQUIRED:Prepare the statement of cash flow for Provision Ltd for the year ended 31 December 2018using the indirect method.

Statement of Cash Flow - Statement of Cash Flow includes inflow and outflow of cash in the financial…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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