Practice exercise after chapter 6

Open Co statement of financial position at 31 July 20X3 is shown as following:

Statement of financial position at 31 July 20X1
20X3 20X2
$’000 $’000 $’000 $’000
Assets:
Non-current assets:
PPE at cost 490 450
PPE accumulated depreciation 370 120 330 120
Investment at cost 19 44
139 164
Current assets:
Inventories 289 176
Trade receivables 231 106
Allowance for receivables 26 205 4 102
Prepayments 13 12
Cash at bank and in hand - 109
507 399
Total assets 646 563
Equity:
Ordinary share 230 180
Preference share 20 20
Share premium 30 -
Retained earnings 158 213
438 413
Liabilities:
Non-current liabilities:
14% Redeemable preference share - 40
12% Redeemable preference share 30 -
Current liabilities:
14% Redeemable preference share 40 -
Trade payables 60 55
Accruals 9 8
Amount owning for non-current asset purchase 20 -
Taxation 9 47
Bank overdraft 40 178 - 110
Total Equity and Liabilities 646 563
 Additional information:
(1) Equipment which had cost $30,000 during the year to 31 December 20X0 was sold in February 20X3 for
$10,000. The company depreciates equipment at 20% per annum on cost with a full charge in the year of
acquisition and non in the year of disposal. (Some of the equipment was over five years old on 31
December 20X3).
(2) Non-current asset investments which had cost $25,000 some years previously were sold during the year for
$21,000.
(3) Dividends received during the year were $5,000. Dividends totaling $100,000 were paid during the year.
(4) The 14% redeemable preference share were issued many years ago and are due to be redeemed on 1
January 20X4. A fresh issue of 12% redeemable preference share was made on 31 July 20X3.
(5) Interest paid during the year (including preference share interest) was $8,000. All interest was paid on the
due date and no interest was accrued at either the start or the end of the year. No interest was received
during the year.
(6) Taxation shown as a liability on 31 July 20X2 was paid during the year to 31 July 20X3 at the amount
stated.

Requirement:
Prepare a statement of cash flows for the year to 31 July 20X3 in according with the requirements of IAS 7
(using the indirect method).