Question

The balance sheets for Choolwe & Co Ltd for the years ended 2017, 2018, and 2019 are as follows:
2017 2018 2019
Non Current assets K000 K000 K000
Plant and Equipment 13,200 16,110 16,410
Current assets
Inventory 2,190 2,280 2,490
Trade debtors 2,040 2,280 2,490
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)
Total current liabilities 5,460 5,610 5,750
Net current assets 4,890 2,220 2,620
Total assets less current liabilities 18,090 18,330 19,030
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 2017, equipment was sold at a loss of K210,000. New Equipment in 2017 cost K5,100 000 and in 2018 cost K1,200,000. Income transferred to other reserves in 2018 and 2019 amounted to K780 and K510 respectively.
REQUIRED:
Prepare a statement of cash flows for 2018 and 2019 in accordance with FSR 1 and how they would be presented under 1AS7.

Answer 1

Additional information of disposal and purchase of equipment related to 2018 and 2019