The statement of financial position of Abagana Plc as at July 31, 2016, and 2017 is shown below

Statement of Financial Position as at July 31

Additional Information:

1. Equipment costing N45,000 was sold in February 2017 for N15,000. The company depreciates equipment at 20% per annum on cost, with a full charge in the year of acquisition and none in the year of disposal.
2. Non-current asset investments costing N38,000 were sold during the year for N31,500.
3. Dividends received during the year amounted to N7,500. Dividends paid during the year totaled N150,000.
4. The 14% loan notes were redeemed in January 2017, and 12% loan notes were issued in July 2017.
5. The company issued N75,000 ordinary shares at a premium of 60 kobo per share in January 2017.
6. The net cash flow from operating activities using the indirect method is a deficit of N187,000.

Required: a. Prepare a statement of cash flows for the year ended July 31, 2017, in accordance with IAS 7, using the indirect method. (12 Marks)

b. Reconcile the total cash and cash equivalents shown by the statement of cash flows to the equivalent figures shown in the opening and closing statements of financial position. (5 Marks)

c. Comment briefly on the significance of the information provided by the statement of cash flows. (3 Marks)