Revision question on preparation of cash flow statements.

The following information relates to the draft financial statements of Kigali summarized statements of financial position as at:

  31 March 2013 31 March 2012
  Frw’000 Frw’000 Frw’000 Frw’000
Assets        
Non-current assets        
Property, plant and equipment (note (i))   19,000   25,000
Current assets        
Inventory   12,500   4,600
Trade receivables   4,500   2,500
Tax refund due   500  
Bank     1,500



Total assets   36,500   33,600
         
Equity and liabilities        
Equity        
Equity shares of Frw 1 each (note (ii))   10,000   8,000
Share premium (note (ii)) 3,200   4,000  
Retained earnings 4,500 7,700 6,300 10,300
    17,700 10,300 18,300
Non-current liabilities        
10% loan note (note (iii))   5,000  
Finance lease obligations 4,800   2,000  
Deferred tax 1,200 6,000 800 7,800
Current liabilities        
10% loan note (note (iii)) 5,000    
Tax   2,500  
Bank overdraft 1,400    
Finance lease obligations 1,700   800  
Trade payables 4,700 12,800 4,200 7,500
Total equity and liabilities   36,500   33,600

Summarized income statements for the years ended:

  31-Mar-2013 31-Mar-2012
  Frw,000 Frw,000
Revenue 55,000 40,000
Cost of sales 43,800) (25,000)
Gross profit 11,200 15,000
Operating expenses (12,000) (6,000)
Finance costs (note (iv)) (1,000) (600)
Profit (loss) before tax (1,800) 8,400
Income tax relief (expense) 700 (2,800)
Profit (loss) for the year (1,100) 5,600



The following additional information is available:

(i)   Property, plant and equipment is made up of:

  31 March 2013 31 March 2012
  “000” “000”
Leasehold property Nil 8,800
Owned plant 12,500 14,200
Leased plant 6,500 2,500

19,000                          25,500

During the year Kigali sold its leasehold property for TZS 8,500,000 and entered into an arrangement to rent it back from the purchaser. There were no additions to or disposals of owned plant during the year. The depreciation charges (to cost of sales) for the year ended 31 March 2013 were:

  “000”
Leasehold property 200
Owned plant 1,700
Leased plant 1,800
  3,700

(ii) On 1 July 2009 there was a bonus issue of shares from share premium of one new share for every 10 held. On 1 October 2009 there was a fully subscribed cash issue of shares at par.

(iii) The 10% loan note is due for repayment on 30 June 2010. Kigali is in negotiations with the loan provider to refinance the same amount for another five years.

(iv) The finance costs are made up of: For year ended:

  31 March 2013 31 March 2012
  “000” “000”
Finance lease charges 300 100
Overdraft interest 200 Nil
Loan note interest 500 500
  1,000 600

Required:

Prepare a statement of cash flows for Kigali for the year ended 31 March 2013 in accordance with IAS 7 Statement of cash flows, using the indirect method;

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