Question

The balance sheets of Jobin & Co Ltd for the years ended 2010, 2011 and 2012 are as follows:

Jobin & Co Ltd

Balance sheets at 31 December

                                                                                            2010              2011             2012

                                                                                            K000              K000             K000

Non-current assets

Plant and equipment                                                    13,200            16,110          16,410

Current assets

Inventory                                                                           2,190              2,280             2,490

Trade debtors                                                                 2, 040             2,100             2,430

Short-term investments                                                 4,200               1,800            1,290

Cash at bank and in hand                                               1,920               1,650            2,160

Creditors: amounts falling due within one year

Short-term loans                                                             (2,340)            (2,580)          (2,550)

Trade creditors                                                                (2,760)            (2,610)          (2,670) Taxation                                                                           (360)                (420)             (530)

Net current assets                                                            5,460               5,610             5,750

Net current assets                                                            4,890               2,220             2,620

Total assets less current liabilities                               18,090            18,330           19,000

Capital and reserves

Called-up share capital                                                    4,500               4,500             4,500

Share premium account                                                  9,000               9,000             9,000

Other reserves                                                                  3,280               4,060             4,570

Income statement                                                            1,310                  770                960

                                                                                           18,090            18,330           19,030

Other data

Income before tax                                                                960               1,020             1,590

Tax on annual profit                                                             360                  420                 530

Tax paid during the year                                                      300                  360                 420

Annual depreciation                                                             645                  780                 900

Dividends declared and paid                                              360                   360                 360

In 2011, equipment was sold at a loss of K210,000. New plant in 2011 cost K5,100,000 and in 2012 cost K1,200,000. Income transferred to other reserves in 2011 and 2012 amounted to K780 and K510 respectively.

REQUIRED;

Prepare a statement of cash flows for 2011 and 2012 in accordance with FSR 1 and show how they would be presented under IAS 7.

Answer 1