Express Ltd is an imported and wholesaler of electronic products. Below are the extracts from the company's financial statements are set out below: Statements of comprehensive income for the year ended 30 June 2018 MUR Revenue Cost of Sales Gross Profit Operating expenses Finance cost Profit before tax Income tax expense Profit for the year Other comprehensive income Gain on equipment revaluation Total Comprehensive income for the year 131,600 (87,600) 44,000 (22,400) (1,200) 20,400 (6,400) 14,000 10,000 24,000 Statements of financial position as at 30 June 2018 2017 MUR MUR MUR MUR Asset Non-current assets Cost 187,000 160,000 (86,000) 101,000 (96,000) 64,000 Accumulated depreciation Current Assets Inventory 10,400 8,800 15,600 Trade receivable Bank Total assets Nil 26,000 127,000 5,600 1,400 15,800 79,800 Equity & liabilities Equity shares of MUR 1 each Share premium Revaluation reserve Retained earnings 33,200 9,600 15,000 37,600 95,400 16,000 1,000 5,000 31,600 53,600 Non-current liabilities 10% loan notes 8,000 6,000 Nil Current liabilities Bank Overdraft Trade payables Taxation Total equity and liabilities 7,200 10,400 6,000 23,600 127,000 9,600 10,600 20,200 79,800 Additional Note Non-current assets During the year, the company scrapped some its non-current assets. The scrapped non-current assets have a cost of MUR 20,000 and had a written down value of MUR 3,000. Also during the year, the company revalued the net book value of its equipment upwards by MUR 10,000. The accumulated depreciation on these equipment amounting to MUR 4,000 was reset to zero. All depreciation is charged to operating expenses REQUIRED (a) Prepare a statement of cash flows for Express Ltd for the year ended 30 June 2018 in accordance with IAS 7. [24 marks] (b) What are the benefits of preparing a cash flow statement for a company such as Express Ltd