CASH FLOW STATEMENT Q1. Set out below are the financial statements of Emma, a limited liability company. You have been asked to prepare the company's statement of cash flows, implementing IAS 7 Statement of cash flows. EMMA STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2020 GHc'000 Sales revenue 2,553 Cost of sales 1.814 Gross profit 739 Distribution costs (125) Administrative expenses (264) Operating profit 350 Interest received 25 Interest paid (75) Profit before tax 300 Income tax expense (240) Profit for the year 60 EMMA STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2019 2020 GHc'000 GHc'000 Non-current assets Tangible assets 380 305 Intangible assets 250 200 Investments 25 - 630 530 Current assets Inventories Receivables Short-term investments Cash in hand 102 315 150 390 50 2 592 1.222 1 418 948 Equity and liabilities Share capital (GHcl ordinary shares) Share premium account Revaluation surplus Retained earnings 200 160 100 160 620 150 150 91 100 491 100 Non-current liabilities Long-term loan Current liabilities Trade payables Bank overdraft Taxation 127 85 290 502 1.222 119 98 240 457 948 The following information is available. a) The proceeds of the sale of non-current asset investments amounted to GHc30,000. b) Fixtures and fittings, with an original cost of GHc85,000 and a carrying value of GHc45,000, were sold for GHc32,000 during the year. c) The current asset investments fall within the definition of cash equivalents under IAS 7. d) The following information relates property, plant and equipment. 31.12.2019 31.12.2020 GHC'000 GHC'000 720 595 Accumulated depreciation 340 290 Carrying value 380 305 e) 50,000 GHcl ordinary shares were issued during the year at no par value. Cost Required Prepare a Statement of Cash Flows for the year to 31 December 20X2 using the format laid out in IAS 7, together with the relevant notes to the statement