Reference no: EM132606288
The following balance sheets relate to Track Limited:
Balance sheets as at 30 June
2011 2010
$000 $000
Non-current assets at cost 650 500
Less: Accumulated depreciation (300) (200)
350 300
Investments at cost 50 200
400 500
Current assets
Inventory 700 400
Accounts receivable 1,550 1,350
Cash and bank - 100
2,250 1,850
Total assets 2,650 2,350
Current liabilities
Bank overdraft 60 -
Accounts payable 920 800
Taxation 190 230
Total liabilities 1,170 1,030
Net assets 1,480 1,320
Equity
Called-up share capital ($1 ordinary shares) 750 500
Share premium account 200 150
Retained profits 530 670
14,480 1,320
Additional information
1) During the year to 30 June 2011, some non-current assets originally costing $25,000 had been sold for $20,000 in cash. The accumulated depreciation on these non-current assets at 30 June 2010 amounted to $10,000. Similarly, some of the investments originally costing $150,000 had been sold for cash at their book value.
2) The taxation balances disclosed in the above balance sheets represent the actual amounts agreed with the Revenue and Customs. All taxed were paid on their due dates. Advance corporation tax may be ignored.
3) A dividend of $130,000 was paid during the year to 30 June 2011.
Required
Question 1: Prepare Track Ltd's statement of cash flows for the year ended 30 June 2011 in accordance with the requirements of IAS-7 using the indirect method.