1:07 Done Finnacial Management Sum... QUESTION 2 [TOTAL MARKS: 33.33] The Statement of financial position for Global Hospitality Ltd as on 31 December 2021 and 2020 is as follows: Statement of financial position of Global hospitality Ltd as on 31 December. Non-current assets/fixed assets Land and buildings Equipment 2021 2021 2020 1,074,000 485000 1,559,000 2020 646,000 210.000 856,000 Current assets Inventory 25,000 Trade receivables 159,000 19,000 125,000 Bank 43.000 227.000 0 144,000 1,786,000 1,000,000 Capital and liabilities Share capital 470,000 400,000 Share premium 0 Retained eamings 906.000 1,376,000 176.000 576,000 Non-current liabilities Debentures 75,000 95,000 Current liabilities Trade payables Bank overdraft Taxation due Dividend due 205,000 0 105,000 25.000 335.000 1.786,000 170,000 54,000 75,000 30.000 329,000 1,000,000 There was a sale of non-current assets during 2021.The net book value of the asset sold was 80,000 and there was a profit on the sale of 20,000. Fixed assets worth 868,000 were purchased during the year.. Total depreciation charged for the year was 85,000. Extract from Income Statement as on 31 December 2021 Operating profit on ordinary activities 950,000 Interest (90,000) Tax on profits on ordinary activities (105,000) Operating profit after taxation and interest Requirement: 755.000 Q2(a) [18 Marks] Prepare a cash flow statement for Global hospitality Ltd for year ended 31 December 2021 in accordance with IAS 7. Q 2(b) Using your calculations in (a) above comment on the cash position of the business in the reporting period above. [15.33 Marks] [End of Question 2] MGMT07020-FINANCIAL MANAGEMENT