Question

Following data relates to GRD Photo Limited.
GRD Photo Limited
Statement of Financial Position
As of December 31
Share Capital and Reserves (Rs.’000) (Rs. ‘000)
2010 2009
Issued, subscribed and paid up capital 255,000 255,000
Retained earnings 62,000 20,000
317,000 275,000
Non-Current Liabilities
Bonds payable 72,500 -
Current Liabilities
Trade payable 28,000 17,000
Provision for taxation 12,000 5,000
40,000 22,000
Total Liabilities and Equity 429,500 297,000
Non-Current Assets
Equipment 337,000 215,000
Accumulated Depreciation Equipment (20,000) (40,000)
Long-term investments 10,000 55,000
327,000 230,000
Current Assets
Inventory 15,000 10,000
Prepaid expenses 12,000 7,000
Trade receivables 58,000 41,000
Cash and bank balances 17,500 9,000
102,500 67,000
Total Assets 429,500 297,000
Additional Information:
• Long-term investments comprising 'held-to-maturity' securities carried at a cost of Rs.45 million were sold
for Rs.36 million during the year.
• Equipments costing Rs.58 million (carrying value Rs.12 million) were sold for Rs.8 million.
• Financial charges of Rs.8.7 million were paid during the year.
• Net profit after tax for the year ended December 31, 2010 was Rs.52 million.
• Provision for taxation for the year was Rs.28 million.
• Dividends of Rs.10 million were declared and paid by the company during the year.
Required:
Prepare Statement of Cash Flows for the year ended December 31, 2010 using indirect method as per the
requirements of IAS-7. Necessary workings must be shown.

Answer 1