STATEMENT OF CASH FLOWS

QUESTION 1
The following are the Statements of Financial Position of Yomi Limited for the years ended
December 31, 2017 and 2018.
2018 2017
Assets GH¢ GH¢ GH¢ GH¢
Non Current Assets
Land 560,000 300,000
2,000,00
Building and Equipment 0 1,900,000
2,560,00
0 2,200,000
Accumulated Depreciation (800,000) (770,000)
1,760,00
0 1,430,000
Long-Term Investments 50,000 25,000

Current Assets
Inventory 300,000 320,000
Accounts Receivable 410,000 460,000
Cash 30,000 50,000
Prepaid 20,000 760,000 15,000 845,000
2,570,00
0 2,300,000

Equities and Liabilities

Ordinary shares ( GH¢2 par value) 910,000 710,000
Retained Earnings 670,000 620,000

Non Current Liabilities

Bonds 500,000 800,000
Long-Term Note Payable 150,000 0

Current Liabilities
Accountable Payable 300,000 120,000
Accrued Liabilities 40,000 50,000
2,570,00
0 2,300,000
Additional information about 2018 transactions and events:
1. Net profit before tax for the year was GH¢120,000
2. Tax paid during the year amounted to GH¢10,000
3. Depreciation expense on buildings and equipment was GH¢60,000

4. Sold equipment with a cost of GH¢50,000 and accumulated depreciation of GH¢30,000

for cash of GH¢17,000

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 5. Declared and paid cash dividends of GH¢60,000
6. Issued a GH¢150,000 long-term note and the money was used to purchase buildings
equipment.
7. Purchased long-term investments for GH¢25,000
8. Issued 20,000 shares of GH¢10 par value ordinary shares for GH¢200,000.

9. Purchased land for GH¢260,000.

Required:
Prepare the company’s statement of cash flows for the year ended 31 st December 2018, using the
indirect method, adopting the format in IAS 7 Statement of cash flows.

QUESTION 2
The following information is available for CANDY GH, a limited liability company:

Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st
December, 2018
GH¢
Revenue 7,659
Cost of sales (5,442)
Gross profit 2,217
Operating expenses (1,167)
Operating profit 1,050
Interest expenses (150)
Operating profit before tax 900
Tax expense (420)
Profit after tax 480

Statement of Financial Position as at 31st December:

2018 2017
GH¢ GH¢
ASSETS
Noncurrent assets
Property, Plant & Equipment
Cost 2,160 1,785
Accumulated depreciation (1,020) (870)
Carrying value 1,140 915
Intangible assets 750 600
Investment properties Nil 75

Current assets
Inventory 450 306

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 Receivables 1,170 945
Cash 156 3
Total assets 3,666 2,844

EQUITY AND LIABILITIES

Equity
Stated capital 1,380 1,173
Retained earnings 780 540

Noncurrent liabilities
12% Debenture 510 150

Current liabilities
Trade payable 381 357
Rent accrued or owing 255 294
Taxation 360 330
Equity and liabilities 3,666 2,844

Additional information:

1. Equipment which had cost GH¢255, 000 and with a net book value of GH¢ 135,000 and
was sold for GH¢96, 000 during the year.
2. The cash proceeds of the sale of asset investments properties amounted to GH¢75,000.
3. Dividends paid during the year amounted to GH¢240,000.

Required:

Prepare the company’s statement of cash flows for the year ended 31st December 2018,
using the indirect method, adopting the format in IAS 7 Statement of cash flows.