Statement of financial position of Annie at 30 June 2022

	2022	2021
	$000	$000
Non-current assets	2,096	1,500
Accumulated depreciation	(380)	(240)
	–––––	–––––
	1,716	1,260
Current assets
Inventory	196	210
Trade receivables	204	172
Dividend receivable	114	100
Cash	84	36
	–––––	–––––
	598	518
	–––––	–––––
Total assets	2,314	1,778
	–––––	–––––
Equity and liabilities:
Share capital	400	240
Share premium	212	160
Revaluation surplus	424	24
Retained earnings	566	452
	–––––	–––––
	1,602	876
Non-current liabilities:
Loan	400	600
Current liabilities:
Trade payables	154	158
Interest accrual	6	10
Tax payable	152	134
	–––––	–––––
	312	302
	–––––	–––––
Total equity and liabilities	2,314	1,778

Statement of profit or loss of Annie for the year ended 30 June 2022

	$000
Sales Revenue	2,200
Cost of Sales	(1,356)
Gross Profit	844
Operating Expenses	(618)
Operating Profit	226
Investment Income
Interest	30
Dividends	114
Finance Charge	(44)
Income Tax	(142)
Net Profit for the year	184

• Operating expenses an include a loss on disposal of non-current assets of $10,000.
• During the year and item of plant was disposed of. The plant originally cost $ 160,000 and had accumulated depreciation to the date of disposal of $30,000.

Required:

Prepare a statement of cash flows for Annie for the year ended 30 June 2022 using the indirect method.

Answer rating: 100% (QA)

To prepare a statement of cash flows using the indirect method we need to analyze changes in the bal... View the full answer