Humes Ltd is preparing its annual financial statements for the year ended 31 December 2018. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized as follows: Balance sheet at December 31 2018 2017 Cash Accounts receivable Inventory Investments at FVTPL* Equipment Less: Accumulated depreciation Land 85,000 18,000 23,000 8,000 187,000 (51,000) 90,000 360,000 65,000 22,000 18,000 9,000 150,000 (44,000) 0 220.000 Accounts payable Wages payable Taxes payable Notes payable, long-term Contributed capital Retained earnings 10,000 18,000 2,000 71,000 175,000 84,000 360,000 19,000 17,000 1,000 58,000 80,000 45,000 220,000 * Fair Value Through Profit or Loss Income statement for 2018 Sales Cost of goods sold Other expenses Gain on sale of equipment Fair value gain on Investments at FVTPL Net income after tax 198,000 (89,000 (67,000) 2,000 1,000 45,000 Additional information: Note (1) (2) (3) (4) (5) (6) Equipment was purchased for cash, $62,000, at the year-end There were no other changes to the equipment account other than the sale of the equipment which took place on 28 October 2018 and the purchase in (a) above. On the date of sale, the accumulated depreciation on this equipment was $12,000. No long-term notes payable had been repaid during the year. However, company issued additional long-term notes payable during the year. Land worth $90,000 was acquired through the issue of common stock. New shares had been issued during the year and there was no shares buyback. Cash dividends were declared and paid during the year. No stock dividends were granted. Other expenses on the Income Statement include income tax expense of $26,000. Accounts payable includes only inventory purchases made on credit. There was no additional purchase of investments at FVTPL during the year. There was no gain or loss arising from the disposal of Investments at FVTPL during (7) (8) (9) the year. Required Show all necessary workings to support your answers. (i) Prepare a complete statement of cash flows for Humes Ltd for the year ended 31 December 2018 using the indirect method that is in compliance with the Singapore Financial Reporting Standard (International) 1-7 Statement of Cash Flows. (22 marks) (ii) Calculate the average collection period (round to 2 decimal places) for 2018. How would you interpret this number? (8 marks)