During the year, AB Company sold equipment with an original cost of HK$153,000 and accumulated depreciation of HK$119,000 and purchased new equipment for HK$272,000.

1. Calculate the dividend declared in 2019. Show your workings.
2. Prepare The Statement of cash flows for the year ending December 31, 2019.
3. A friend asked you whether all the dividend declared in 2019 has been paid. Please advise to him.
4. A friend asked you if a transaction for cash sales in 2019 has not been recorded, how would this affect your preparation of statement of cash flow? Please advise him.

Statement of Financial Position and Income Statement Data December 31, December 31, 2019 2018 Property, Plant, and Equipment Less: Accumulated Depreciation HK$1,241,000 (477,000) HK$1,122,000 (442,000) 680,000 764,000 Current Assets: Inventory Accounts Receivable 340,000 306,000 119,000 765,000 391,000 238,000 154,000 783,000 Cash Total Current Assets HK$1,547,000 HK$1,445.000 Total Assets Equity: Share Capital-Ordinary Retained Earnings Total Equity HK$ 510,000 HK$ 467,500 340,000 807,500 374,000 884,000 Non-Current Liabilities: Bonds Payable 391,000 340,000 Current Liabilities: Accounts Payable Notes Payable Income Taxes Payable 187,000 51,000 102,000 68,000 76,500 246,500 85,000 Total Current Liabilities 323,000 Total Liabilities 663,000 637,500 Total Liabilities & Equity HK$1,547,000 HK$1,445,000 HK$1,615,000 731,000 884,000 HK$1,513,000 731,000 782,000 Sales Revenue Less Cost of Goods Sold Gross Profit Expenses: Depreciation Expense Salaries and Wages Expense Interest Expense Loss on Sale of Equipment Income Before Taxes 154,000 136,000 391,000 34,000 357,000 34,000 17,000 288,000 119,000 HK$ 169.000 255,000 102,000 HK$ 153,000 Less Income Tax Expense Net Income