(a) Gwen provided you with previous financial statements and the list of transactions that took place during the year. Statement of Financial Position as at 31/12/2020 Non-current assets Machines Current assets Inventories Trade receivables Prepayment Business rates Bank Total assets CAPITAL AND LIABILITIES Owners' Capital Profit for the year Drawings Non-current liability 5% Bank Loan Current Liability Trade payables Accruals-Electricity Total capital and liabilities Cost Accumulated Net Book 30,000 depreciation 12,000 Value 18,000 10,400 17,000 400 14,350 42,150 60,150 40,000 18,450 (14,350) 44,100 10,000 5450 600 6050 60,150 During 2021 the following transactions took place: 1. 2. 3. 4. During the year Gwen sold 110,500 worth of goods on credit and 65,300 worth of goods for cash. Receipts from trade receivables totalled 113,000. However, one customer who owed her 2,520 filed for bankruptcy. Total purchase from suppliers was 92,600 of which 20% was for cash. Payments to trade payables for credit purchases totalled 73,228. The shop premises is rented for 16,000 per year. A delivery van was purchased on 1st January 2021 for 22,000 cash. This is expected to be used in the business for 10 years and then sold for 4,000. The machine owned by the business was purchased on 01/01/2019. The business adopted straight-line method of depreciation for all non-current assets. The running cost of the vehicle was 2,000 for the year. Wages of 16,200, insurance expenses of 2,450 were paid during the year. However, wages of 1,200 for December was still due. 5. 6. Gwen paid a total of 1,950 for electricity during the year. The bill for the last quarter was still due. The amount is estimated to be 520. 7. On 01/04/2021 Gwen paid 1,400 for business rates for 12 months to 31/03/2022. 8. Gwen withdrew 14,500 cash from the business during the year. 9. Closing inventories were valued at 4,200. 10. The interest on the bank loan was fully paid in December. Required: i) Prepare an Income Statement, a Statement of Financial Position and a Statement of Cash Flows for Gwen for the year ended 31st December 2021 and as at that date. (32 Marks) ii) Based on the Statement of Cash Flows you have prepared, comment how efficiently the business managed cash during the year. (maximum 350 words) (8 Marks)