Question - The balance sheets of Central Limited for the years ended 31/12/2006 and 31/12/2007 are presented below:
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31/12/2007 ($000)
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31/12/2006 ($000)
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Assets
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|
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Bank
|
500
|
300
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Accounts receivable
|
400
|
550
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Provision for doubtful debts
|
-200
|
-150
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Property Plant and Equipment
|
4000
|
2500
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Accumulated Depreciation - Property Plant and equipment
|
-480
|
-350
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Inventory
|
360
|
420
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Total Assets
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4580
|
3270
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|
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Liabilities
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|
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Accounts Payable
|
800
|
600
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Accrued wages
|
260
|
180
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Loans
|
730
|
460
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Total Liabilities
|
1790
|
1240
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Net assets
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2790
|
2030
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|
|
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Contributed equity
|
2000
|
1600
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Revaluation reserve
|
300
|
250
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Retained profits
|
490
|
180
|
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Shareholder equity
|
2790
|
2030
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The Income Statement of Central Limited for the year ended 31/12/2007 is as follows:
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($000)
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Sales
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3890
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Interest received
|
150
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Profit on sale of equipment (Carrying value $420,000)
|
230
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4270
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Expenses
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|
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COGS
|
2200
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Doubtful debts
|
100
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Depreciation
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350
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Interest expense
|
60
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Wages
|
300
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|
3010
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Net profit for the year
|
1260
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Additional Information:
(i) During the year ended 31 December 2007, Central Limited issued new shares for cash considerations of $400,000
(ii) In June 2007 the company obtained a new term loan amounting to $500,000 from the ASB Bank.
(iii) Dividends were paid in 2007.
Required: Prepare a statement of cash flows for Central Ltd. for the year ended 31/12/2007.