In addition, you have the following information:

1. The depreciation charge for the year was 256,578.

2. Equipment with a carrying value of 75,000 was disposed of for 90,000.

3. The dividend paid in the year was 280,950.

4. The tax charge for the year was 47,650

5. Interest paid in the year was 5,850.

Required

a) Prepare the statement of cash flows for Spark Ltd in accordance with IAS 7 Statement of Cash Flows using the indirect method for the year ended 31 March 2020.

b) Comment on the statement of cash flows for Spark Ltd for the year ended 31 March 2020.

Question 5 Below is the statement of financial position for Spark Ltd as at 31 March 2020, together with the comparative year. Spark Ltd Statement of Financial Position as at 31 March 2020 2019 Assets Non-current Assets Land and Buildings 1,519,392 1,463,280 Plant and Equipment 147,590 109,488 1,666,982 1,572,768 Current Assets Inventory 47,170 54,720 Trade and other receivables 50,100 34,600 Cash and cash equivalents 11,350 108,620 89,320 Total Assets 1,775,602 1,662,088 Equity Share capital Share premium Revaluation Retained profit 401,000 350,000 250,000 529,002 1,530,002 301,000 300,000 0 745,138 1,346,138 Non-current liabilities Loans 130,000 151,000 Current liabilities Trade and other payables Borrowings Taxation 60,600 55,000 115,600 1,775,602 67,600 22,350 75,000 164,950 1,662,088 Total Equity and Liabilities