Question $2$ continued:

Additional information:

Spring Ltd classifies interest expense and dividends paid as cash outflows from

operating activities and classifies interest income as cash inflows from investing

activities.

During the year, Plant costing $$100000$ was purchased and paid for by the issuing

$$100000$ of Spring Ltd shares.

During the year, Equipment that originally cost $$100000$ was sold for $$30000$ cash.

During the year, a long$-$term loan of $$30000$ was specifically organised for the

purchase of plant costing $$30000.$

Required:

$($a$)$ Prepare the Spring Ltd general ledger accounts provided in the answer booklet.

$($b$)$ Prepare a Statement of Cash Flows for Spring Ltd$,$ for the year ended $31$ March $2024,$ in

accordance with NZ LAS $7$ Statement of Cash Flows. Spring Ltd uses the indirect method for

the cash flows from operating activities $($CFOA$)$ section.

$($c$)$ Prepare a Statement of Cash Flows for Spring Ltd$,$ for the year ended $31$ March $2024,$ in

accordance with NZ LAS $7$ Statement of Cash Flows. Assume in $($c$)$ that Spring Ltd uses the

direct method for the cash flows from operating activities $($CFOA$)$ section. You are also

required to prepare the reconciliation required by FRS $44$New Zealand Additional

Disclosures.

$($d$)$ What if the cash flows related to interest expense, dividends, and interest income had

been classified differently? Complete the table in the answer booklet.