the statements of financial position of maytix as at 31 october 2005 and 31 october 1572287

The statements of financial position of Maytix as at 31 October 2005 and 31 October 2004 are as follows:

The statement of comprehensive income of Maytix for the year ended 31 October 2005 is as follows:

Notes:

(i) The ‘Statement of changes in equity’ disclosed a dividend paid figure of $1,500,000 during the year to 31 October 2005.

(ii) The non-current asset schedule revealed the following details:

 Property: Additions cost $1,000,000.

Required:

(a) Prepare the Cash Flow Statement of Maytix for the year ended 31 October 2005. Use the format required by IAS 7 ‘Cash Flow Statements’ and show operating cash flows using the ‘indirect method’.

(b) Describe the additional information that would be included in a cash flow statement showing operating cash flows using the direct method and discuss the proposition that such disclosures be made compulsory under IAS 7.