The following information has been taken from the financial statements of Haruna Ltd, a listed company for the year ended 31 March 2017.

The following additional information is relevant:
i) During the year Haruna Ltd issued both ordinary shares and redeemable preference shares for cash.
ii) Investments classified as current assets are held for the short term and are readily convertible into the stated amounts of cash on demand.
iii) During the year, Haruna Ltd sold plant and equipment with a carrying amount of GH¢840,500 for GH¢900,000. Total depreciation charges for the year amounted to GH¢1,100,000. Plant costing GH¢50,000 was purchased on credit. The amount is included within trade and other payables.
iv) Trade and other payables include accrued interest of GH¢5,000 as at 31 March 2017 (2016: GH¢10,000).
v) Intangibles relate to development costs capitalised in accordance with IAS 38 Intangible Assets. Costs amounting to GH¢70,000 were capitalised during the year.
Required:
Prepare a Statement of Cash Flows for Haruna Ltd for the year to 31 March 2017 in accordance with IAS 7 Statement of Cash Flows.

(a) CL Ltd is a wholesaler and retailer of office furniture. Extracts from the company’s financial statements are set out below:

Note:
Non-current assets
During the year the company redesigned its display areas in all of its outlets. The previous displays had cost GHS10million and had been written down by GHS9million. There was an unexpected cost of GHS500,000 for the removal and disposal of the old display areas. Also during the year the company revalued the carrying amount of its property upwards by GHS5million and the accumulated depreciation on these properties of GHS2million was reset to zero.
All depreciation is charged to operating expenses.
Required:
Prepare a statement of cash flows for CL Ltd for the year ended 31 March 2015 in accordance with IAS 7 – Statement of Cash Flows.                                                                                                                                                                                (15 marks)

(b) The directors of CL Ltd are concerned at the deterioration in its bank balance and are surprised that the amount of gross profit has not increased for the year ended 31 March 2015. At the beginning of the current accounting period (i.e. on 1 April 2014), the company changed to importing its purchases from a foreign supplier because the trade prices quoted by the new supplier were consistently 10% below those of its previous supplier. However, the new supplier offered a shorter period of credit than the previous supplier (all purchases are on credit). In order to encourage higher sales, CL Ltd increased its credit period to its customers, and some of the cost savings (on trade purchases) were passed on to customers by reducing selling prices on both cash and credit sales by 5% across all products.
Required:
(i) Calculate the gross profit margin that you would have expected CL Ltd to achieve for the year ended 31 March 2015 based on the selling and purchase price changes described by the directors.                                                                                (2 marks)

(ii) Comment on the directors’ surprise at the unchanged gross profit and suggest what other factors may have affected gross profit for the year ended 31 March 2015.                                                                                                                            (3 marks)