5. The Balance sheet reveals the firm's assets, liabilities and owners' equity (net worth). But the cash position of the company also forms a very prominent position in order to know the liquidity of the company. The balance sheet items (in OMR) are taken from Magrib Ltd. for the years 2018 and 2019 respectively: 5.250 2018 2019 Assets Furniture, Land and Buildind 75045 6 07 Current Assets Inventory 21.975 1 060 Accounts Receivables 9565 11.903 Cash at bank 1 77070 Sundry debtors 9563 1 1.903 Total Assets 133.215 1 02.908 Equity and Liabilities Capital and Reserves Equity Share Capital 52 500 37.500 Free reserves 7500 Share Premium 1 8 .250 Retained Earnings 19.2751 1 2930 87.525 6 0930 Non Current Liabilities 129 Bonds 3. 93 7 575 Current Liabilities Accounts Payable 13.425 | 11.190 Proposed Dividend 7.875 5.625 Taxation 20453 1 7288 41.753 14.103 Total Equity and Liabilities 133.215 102.90 Additional Information Interest paid for bonds was RO1463 during the year Depreciation on buildings was RO5580 Fixed assets whose value was RO 8685 was sold for a loss of RO1050 during the year A) From the above Balance sheet items, you are required to calculate: a) Profit before Interest and Tax and prepare b) Cash flow statement for the year 2019 (6 marks) B) In the Cash flow statement, certain items are added and certain items are deducted. From the Cash flow statement, you have prepared, comment on the reasons for adding or deducting those items. (4 marks) 7 Page