Hi there,

Can you help me( show the woking notes as well), please?

Thank you

PI8.7 The financial statements of Ernest Banks Ltd appear below. ERNEST BANKS LTD Statement of Financial Position as at 31 December Assets 2014 Cash $ 11 500 Accounts receivable 12 000 Inventory 10 000 Prepaid expenses 10000 Land 20 000 Property, plant and equipment 100 000 Less: Accumulated depreciation (25000) Total assets $ 138 500 2013 $ 6500 16 500 13 500 6 500 20 000 112 500 (33750) $141 750 Liabilities and Shareholders' equity Accounts payable Accrued expenses payable Interest payable Income taxes payable Bonds payable Share capital Retained earnings Total liabilities and shareholders' equity $ 4500 4750 500 1 500 25 000 61 500 40 750 $ 138500 $ 9250 3750 750 1 000 40 000 52 500 34 500 $141 750 ERNEST BANKS LTD Income Statement for the year ended 31 December 2014 $300 000 1250 $301 250 Income Sales revenue Gain on sale of PPE assets M S 2100 Less: Expenses Cost of sales Other expenses (excluding depreciation) Depreciation expense Interest expense Income tax expense Profit 250 000 30 000 3750 2 500 4500 290 750 $ 10500 Additional information: 1. PPE assets were sold at a sales price of $31250. 2. Additional equipment was purchased at a cost of $30 000 3. Dividends of $4250 were paid. 4. All sales and purchases were on account. 5. Bonds were redeemed at face value. 6. Additional shares were issued for cash. Required Prepare a statement of cash flows using the indirect method. *** Data for Ernest 1. Are cement of cash flows for mest Bank Ind for the year ended 31 December 20 ar ended 31 December 2014