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Monty is a publicly listed company. Its financial statements for the year ended 31 March 2013 including comparatives are shown below:

Statements of profit or loss and other comprehensive income for the year ended: 

 

 

$000

Revenue 

31,000 

Cost of sales 

(21,800) 

 

–––––––

Gross profit 

9,200 

Distribution costs 

(3,450) 

Administrative expenses 

(2,200) 

Finance costs – loan interest 

(400) 

                          – lease interest

(150)

 

–––––––

Profit before tax 

3,000 

Income tax expense 

(1,000) 

 

–––––––

Profit for the year 

2,000 

Other comprehensive income (note (i)) 

1,350 

 

–––––––

 

3,350 

 

–––––––

Statements of financial position as at: 

 

 

31 March 2013

31 March 2012

 

$000

$000

$000

$000

Assets 

 

 

 

 

Non-current assets 

 

 

 

 

Property, plant and equipment 

 

14,000 

 

10,700 

Deferred development expenditure 

 

1,000 

 

nil 

 

 

––––––

 

––––––

 

 

15,000 

 

10,700 

Current assets 

 

 

 

 

Inventory 

3,300

 

3,800 

 

Trade receivables 

2,950

 

2,200 

 

Bank 

1,980

8,230 

1,300 

7,300 

 

––––––

––––––

––––––

––––––

Total assets 

 

23,230 

 

18,000 

 

 

––––––

 

––––––

Equity and liabilities 

 

 

 

 

Equity 

 

 

 

 

Equity shares of $1 each 

 

7,000 

 

7,000 

Revaluation surplus 

 

1,350 

 

nil 

Retained earnings 

 

3,200 

 

1,750 

 

 

––––––

 

––––––

 

 

11,550 

 

8,750 

Non-current liabilities 

 

 

 

 

8% loan notes (note(iii))

4,080 

 

4,000 

 

Deferred tax 

1,500 

 

800 

 

Lease liability 

1,200 

 

900 

 

Government grant

200

 

100

 

 

––––––

6,980

––––––

5,800

Current liabilities 

 

 

 

 

Lease liability 

750 

 

600 

 

Trade payables 

2,650 

 

2,100 

 

Current tax payable 

1,250 

 

725 

 

Government grant

50

4,700

25

3,450

 

––––––

––––––

––––––

––––––

Total equity and liabilities 

 

23,230

 

18,000 

 

 

––––––

 

––––––

 

Notes:

  1. On 1 July 2012, Monty acquired additional plant under a lease that had a present value of lease payments of $1.5 million. On this date it also revalued its property upwards by $2 million and recorded $650,000 to deferred tax due to this revaluation. There were no disposals of non-current assets during the period. 
  2. Depreciation of property, plant and equipment was $900,000 and amortization of the deferred development expenditure was $200,000 for the year ended 31 March 2013. 
  3. The 8% loan notes are repayable at a premium, giving them an effective rate of 10%.  No loan notes were issued or redeemed during the year.
  4. $25,000 was credited to administrative expenses in respect of government grants during the year.

Requirements:

Prepare a statement of cash flows for Monty for the year ended 31 March 2013, in accordance with IAS 7 Statement of Cash Flows, using the indirect method. 

Marks: 20

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