Income Statements for the year ended $31$ December

The following further information is available:

$(1)$ The government bonds are highly liquid and management has decided to classify them as cash

equivalents.

$(2)$ An asset was disposed of for sale proceeds of $$120,000$ with the gain$/$loss on disposal included

as part of expenses in the income statement. The cost of asset sold was $$240,000$ and its net book

value was $$140,000.$

$(3)$ The investments are shares held in another company. An impairment loss of $$20,000$ was written

off and included in administrative expenses. There was also purchase of additional shares during

the year.

$(4)$ A bonus issue of $150,000$ ordinary $$1$ shares was made on $1$ January $2022.$ The bonus issue was

made partly by utilising all of the share premium and the balance by capitalising retained earnings.

There was a further issue of shares at a premium for cash consideration made on $30$ June $2022.$

$(5)$ An interim dividend was paid in June $2022.$

Required:

$($a$)$ Prepare a cash flow statement for Wesley Ltd for the year ended $31$ December $2022.$

$(15$ marks$)$

$($b$)$ Evaluate Wesley Ltd$\text{'}$s cash flow position.

$($Your answers should ONLY be about $\frac{1}{2}$ page $-3/4$ page.$)$