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: 2018 2019 Assets Furniture, Equipment and buildings 100,060 81,040 Current Assets Inventory 29,300 14,480 Sundry debtors 12,750 15,870 Bank 22,760 9,950 Short term loan 12,750 15,870 Total Assets 177,620 137,210 Equity and Liabilities Capital and Reserves Ordinary Share Capital 70,000 50,000 Revaluation reserves 10,000 7,000 Share Premium 11.000 7,000 Retained Earnings 25,700 17,240 116,700 81,240 Non-Current Liabilities 12% Long term loan 5,250 10,500 Current Liabilities Sundry creditors 17,900 14,920 Proposed Dividend 10,500 7,500 Taxation 27,270 23,050 55,670 45,470 Total Equity and Liabilities 177,620 137,210 Additional Information Interest paid on long term loan was RO1950 during the year Depreciation on the non-current Asset was RO 7440 Building with a book value of RO11,580 was sold for a loss of RO1400 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 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)