QUESTION $1$

Madness plc prepares its financial statements to $31$ December each year and extracts from the group's consolidated financial statements are shown below:

Consolidated Statements of Profit or Loss and Other Comprehensive Income for the Year Ended $31$ December

Additional Information

$1.$ Included in net operating expenses for the year ended $31$ December $2023$ is a gain of $\backslash (100,000\backslash )$ arising on the sale of a property during the year. The property had been revalued several years previously, with the surplus being credited to revaluation reserves. It is group policy to charge a full year's depreciation in the year of acquisition and none in the year of disposal.

$2.$ During the year ended $31$ December $2023,$ Madness ple entered into new lease agreements in respect of plant and equipment. The amounts debited to non$-$current assets in respect of such agreements during the year totalled $\backslash (150,000\backslash ).$ There were no other additions to property, plant and equipment during the year.

$3.$ During the year ended $31$ December $2023,$ Madness plc purchased $\backslash (75\backslash \%\backslash )$ of the ordinary share capital of Darts Limited for $\backslash (180,000\backslash )$ in cash. The fair value of the net assets of Darts Limited at the date of acquisition was:

$4.$ During the year ended $31$ December $2023,$ dividends amounting to $\backslash (144,000\backslash )$ were debited to equity.

Requirement

$($a$)$ Prepare the consolidated statement of cash flows of Madness plc for the year ended $31$ December $2023$ in accordance with IAS $7$ Statement of Cash Flows.

$18$ Marks

$($b$)$ Discuss the decision usefulness of the required classifications of cash flows under IAS $7$ Statement of Cash Flows.