Kingdom is a public listed manufacturing company. Its draft summarised financial statements for the year ended 30 September 2013 (and 2012 comparatives) are: Statements of profit or loss and other comprehensive income for the year ended 30 September: 

2013 2012 $’000 $’000 

Revenue 44,900 44,000 

Cost of sales (31,300) (29,000) ––––––– ––––––– 

Gross profit 13,600 15,000 

Distribution costs (2,400) (2,100) 

Administrative expenses (7,850) (5,900)

Investment properties – rentals received 350 400 – fair value changes (700) 500 

Finance costs (600) (600) ––––––– ––––––– 

Profit before taxation 2,400 7,300 

Income tax (600) (1,700) ––––––– ––––––– 

Profit for the year 1,800 5,600 

Other comprehensive income (1,300) 1,000 ––––––– ––––––– 

Total comprehensive income 500 6,600 ––––––– ––––––– 

Statements of financial position as at 30 September: 2013 2012 $’000 $’000 $’000 $’000 

Assets Non-current assets Property, plant and equipment 26,700 25,200 

Investment properties 4,100 5,000 ––––––– ––––––– 30,800 30,200 

Current assets Inventory 2,300 3,100 

Trade receivables 3,000 3,400 

Bank nil 5,300 300 6,800 –––––– ––––––– –––––– –––––––

 Total assets 36,100 37,000 ––––––– ––––––– 

Equity and liabilities Equity Equity shares of $1 each 17,200 15,000 

Revaluation reserve 1,200 2,500 

Retained earnings 7,700 8,700 ––––––– ––––––– 26,100 26,200 

Non-current liabilities 12% loan notes 5,000 5,000 

Current liabilities Trade payables 4,200 3,900 

Accrued finance costs 100 50 Bank 200 nil 

Current tax payable 500 5,000 1,850 5,800 –––––– ––––––– –––––– ––––––– 

Total equity and liabilities 36,100 37,000 ––––––– ––––––– 

The following information is relevant: On 1 July 2013, Kingdom acquired a new investment property at a cost of $1·4 million. On this date, it also transferred one of its other investment properties to property, plant and equipment at its fair value of $1·6 million as it became owner-occupied on that date. 

Kingdom adopts the fair value model for its investment properties. Kingdom also has a policy of revaluing its other properties (included as property, plant and equipment) to market value at the end of each year. Other comprehensive income and the revaluation reserve both relate to these properties. Depreciation of property, plant and equipment during the year was $1·5 million. An item of plant with a carrying amount of $2·3 million was sold for $1·8 million during September 2013. 

Required:

Prepare the statement of cash flows for Kingdom for the year ended 30 September 2013 in accordance with IAS 7 Statement of Cash Flows using the indirect method.

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