CW Ltd, had the following balance sheet at 31 December 2006 and 2007. ASSETS 2006 2007 R Patents Land 124 000 60 000 174 000 112 000 60 000 174 000 Machinery and equipment Accumulated depreciation, Machinery and equipment (64 000) 440 000 Buildings (38 000) 290 000 (90 000) 4884 Accumulated depreciation, buildings Prepaid expenses (90 000) 5 714 70 352 20 000 Stock 54830 Bills receivable Debtors Investments 112 000 52 200 62 840 806 754 175 110 78 400 79 122 1060 698 Bank LIABILITIES Creditors 64 474 Salaries payable Bond 45 154 27 000 170 000 310 000 120 000 30 000 104 600 30 000 230 000 430 000 Ordinary R10 shares Preference shares, R100 par value 120 000 Ordinary share premium 30 000 Retained earnings 156 224 806 754 1060 698 Additional information in respect of 2007: 1. The net income for the year, after tax of R61 074, amounted to R114 648. 2. Dividends paid for the year, R63 024. 3. Depreciation written off for year: Buildings R30 000 Machinery and equipment R26 000 4. A building costing R30 000, fully depreciated, was abandoned. 5. Amortization in respect of Patents amounted to R12 000 for the year. 6. An additional bond was acquired during the year, R180 000. 7. A bond of R120 000 was redeemed during the year, issuing 12 000 ordinary shares in exchange. Required Prepare a cash flow statement for the year