(b) Nyali Lid's comparative balance sheets, income statement and additional information follow: Assets: Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Acc. Dep.-equipment Total assets Nyali Ltd Balance sheets as at December 31, 2008 and 2009 2008 2007 Shs Shs 430,500 239,250 341,250 398,250 1,560,000 1,464,750 36,000 16,500 1,358,250 1,467,000 (619,500) (475 500). 3.106,500 3.10.250 Shs 288,000 51,000 Liabilities and Equity: Accounts payable Income tax payable Dividends payable Bonds payable Ord shares, Shs 10 par Retained earnings Total liab, & equity Shs 337,500 44,250 45,000 375,000 1,687,500 621 000 3.110.250 1,687,500 1.080,000 3.106.500 Nyali Ltd Income statement For the year ended December 31,2008 Shs Shs 4,461,000 2,223,000 1,203,000 255,000 (3,681.000) 7880,000 Sales Cost of Goods sold Other operating expenses Depreciation expenses Operating income Other gains (losses): Loss on sale of equipment Loss on retirement of bonds Income before taxes Income taxes expense Net income 33,000 8.250 (41,250) 738,750 (137,250) 601.500 cm nimenion Additional information: Equipment costing Shs 213,750 with accumulated depreciation of Shs 111,000 was sold for cash Equipment purchases were for cash. Account depreciation is affected by depreciation expense and the sale of equipment All sales are made on credit. All merchandise inventory purchases are on credit. Accounts payable results from inventory purchases. Prepaid expenses relate to other operating expenses". Required: A statement of cashflows, using the indirect method, for the year 2008. (15 marks)