The Following are extracts from the financial statements of Wewe Ltd. As at 31^st March:

2018		2017
Shs ‘000’	Shs ‘000’	Shs ‘000’	Shs ‘000’
Fixed assets:	2,800	2,900
Goodwill	16,800	12,000
Freehold Land & building	5,860	6,350
Plant & Machinery (NBV)	3,600	3,750
Investment at cost	29,060	25,000
Current Assets:	10,050	8,700
Stock	6,140	7,800
Accounts receivable	1,710	840
Investment	200	430
Cash at hand & bank	18,100	17,770
Current Liabilities:	(2,390)	(6,540)
Bank overdraft	(5,850)	(5,250)
Account Payable	(450)	(380)
Proposed dividends	(820)	(600)
Taxation	(9,510)	(12,770)
8,590	5,000
Net current assets	37,650	3,000
15% Debentures	(7,500)	(9,000)
30,150	21,00
Capital and Reserves:
Authorized, issued & paid Sh. 10	18,000	15,000
Ordinary shares	1,500	750
Share premium	4,500	-
Revaluation reserve	6,150	5,250
Retained Profit	30,150	21,000

The profit and loss appropriation account for the year ended 31 March 2018 is given below:

Shs. ‘000’	Shs. ‘000’
Net profit before tax	2,400
Less: Corporation tax	900
Profit after tax	1,500
Dividends:
Interim (Paid)	150
Proposed (Paid)	450	600
900

The following additional information is provided:

1. Profit for the year is arrived at after charging:

Shs. ‘000’
Depreciation on plant & machinery	1,150
Goodwill amortization	420

2. During the year, the plant with a net book value of Sh. 750,000 was sold for Sh, 1,470,000. The plant had originally cost Sh. 3,000.000.
3. The investment portfolio was reduced by selling one block of shares at a profit of Sh. 160,000.

Required:

Cash flow statement in accordance with IAS 7.

Answer rating: 100% (QA)

Answer Particulars Profit before Interest and taxes 2400 Cash from Operating A... View the full answer