QUESTION 3 (20 marks) Viapipe Ltd is a company specializing in the construction of and operation of pipleines. The company's financial results for the year 30 September 2018 provided below: Statement of comprehensive income Revenue Cost of sales Gross profit Other income Gain on sale of equipment Operating expenses Salary and wages Depreciation Other operating expenses Operating profit Interest expense Profit before tax Tax expense Profit after tax Statement of financial position Non-current assets Property, plant and equipment* Land and buildings Equipment Accumulated depreciation - Equipment 2018 R'000 123 922 60 750 63 172 1 121 46 575 21 632 5 395 19 548 17 718 1 353 16 365 4 709 11 656 2018 R'000 52 631 23 012 48 514 -18 895 2017 R'000 53 285 23 012 46 535 -16 262 Current assets Inventory Accounts receivable Cash and cash equivalents Prepaid expenses TOTAL ASSETS Equity Share capital Retained earnings Liabilities Non-current liabilities Borrowings Current liabilities Accounts payable Accrued interest SARS TOTAL EQUITY AND LIABILITIES 33 008 21 287 5 465 5 408 848 85 639 42 493 20 250 22 243 16 605 26 541 25 915 324 302 85 639 30 075 17 969 4 685 6 348 1 073 83 360 38 864 23 490 15 374 18 954 25 542 24 870 402 270 83 360 During 2018 Viapipe Ltd purchased new equipment for a total cost of R7.05 million. No items impacted retained earnings other than net profit and dividends. REQUIRED QUESTION 3 Complete the statement of cash flows (using the direct method) Marks 20