BATA SHOE COMPANY STATEMENT OF FINANCIAL POSITIONS AS OF DECEMBER 2015 AND 2014 2015 2014 1.250 Debt investments K6,500 K7,350 Plant assets 9.500 8.500 Accumulated depreciation (6,000) (5,850) Inventory 8,000 9,500 Accounts Receivables 8,750 6.500 Cash 9.000 5.500 Total Assets 35.750 31.500 Share capital (ordinary) 9,500 8.500 Retained earnings 12,250 9,500 Bonds payable 7,000 8,250 Accounts payable 6,000 4,000 Accrued liabilities 1000 Total Capital & liabilities 35.750 3.500 BATA SHOE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 2015 Sales revenue 34,500 Cost of goods sold 23.500 Gross profit 11,000 Selling and Admin Expenses 4.650 Income from operations 6,350 Other income and expenses Gain on sale of investment 400 Income before tax 6,750 Tax 2.700 Net income 4.050 C FAR 13/12/17 Page 3 dditional information: During the year, K350 f ordinary shares were issued in exchange for plant assets. No plant assets were sold in 2015. Cash dividends were K1,300. Requred a)Prepare a statement of cash flows using the indirect method. (15 marks) b)Recalculate the cash flow from operating activities using the direct method.(Smarks) C) The shareholders are wondering if the company has the ability to pay the dividends when they fall due.Interprete the cash flow and advise the shares about their concern.(4