Example 1
The accountant of Radiance Co, who needs your help to prepare the statement of cash flows, provides the following information:
Radiance Co statement of financial position as at 31 December
2015 2°14
$             $ $ $
Non-current assets
Property plant and equipment cost                   220,000 180,000
PPE accum depreciation                                (92,000) (78,000)
128,000 102,000
Current assets
Inventory                                                       17,000 12,000
Trade receivables                                           10,000 2,000
Government bonds                                         10,000 10,000
Bank                                                            16,000 3,000
53,000 27,000
Total assets                                                             181,000 129,000
Equity and liabilities
Equity
Share capital ($1) Share premium Retained earnings
Non-current liabilities
10% loan note
Current liabilities
Trade payables Taxation
65,000 12,000 68,000
13,000 3,000
145,000
20,000
16,000
45,000 10,000 24,000
19,000 1,000
79,000
30,000
20,000
Total equity and liabilities
181,000
129,000
Radiance Co Statement of profit or loss (extract) for the year ended 31 2015
$
Profit before interest and tax 52,000 Finance costs (2,000) Taxation expense f6,000) Profit for the year 44,000
Required:
Prepare the statement of cash flows for Radiance Co for the year ended 31 2015.