Reference no: EM133146497
Question - A summarised comparative statement of financial position of Black Inc. is presented below:
|
31 Dec 2016
|
31 Dec 2017
|
|
Cash
|
$25,000
|
$45,000
|
|
Trade receivables
|
50,000
|
65,000
|
|
Investments in financial assets
|
40,000
|
50,000
|
|
Plant
|
130,000
|
180,000
|
|
Accumulated depreciation
|
(45,000)
|
(60,000)
|
|
$200,000
|
$280,000
|
|
|
|
|
Trade accounts payable
|
$6,000
|
$4,000
|
|
Interest payable
|
7,000
|
|
|
Current tax payable
|
20,000
|
28,000
|
|
Deferred tax liability
|
-
|
3,000
|
|
Borrowings
|
40,000
|
10,000
|
|
Share capital
|
100,000
|
130,000
|
|
Retained earnings
|
27,000
|
105,000
|
|
$200,000
|
$280,000
|
Additional information
1. There were no disposals of plant during the year.
2. There were no purchases or sales of investments in financial assets during the year. Gains and losses on changes in the fair value of investments in financial assets are recognised in profit or loss.
3. Black Inc. settled a loan (borrowings) of $30 000 by issuing ordinary shares. There were no other repayments of borrowings.
4. Profit for the year was $101 000, interest expense was $14 000, and income tax expense was $31 000. There were no items of other comprehensive income.
5. A $23 000 dividend was paid during the year.
6. Service revenue for the year was $300 000. There was no other revenue.
7. Black Inc. classifies interest as an operating activity.
Required - Using the indirect method of presenting cash flows from operating activities, statement of cash flows in accordance with IAS 7 for the year ended 31 December 2017.