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JAMBO Company Ltd is a business organization that trades in building materials. The comparative statement of financial position ( 2 0 2 1 and 2

JAMBO Company Ltd is a business organization that trades in building materials. The comparative statement of financial position (2021 and 2022) of the company and the statement of comprehensive income for 2022 are given below.JAMBO CompanyComparative Statement of financial positionAs at December 31st 2021 and 20222021 Shs Millions2022 Shs MillionsNon-current assets Machinery1,2601,380 Accumulated depreciation2261,0342311,149Current assets Stock400850 Accounts receivable320450 Short term Government securities-10 Cash in hand4076051,315Total assets 1,7942,464Financed by: Equity and liabilities Share capital 650700Reserves Share premium100200 Retained earnings5756751,1651,365Shareholders equity 1,3252,065Non-current liabilities 10% Debenture 10075Current Liabilities Accounts payable270200 Taxation9585 Overdraft436939324Total equity and liabilities 1,7942,464 Statement of comprehensive incomeFor the year ended 31/12/20222 Shs MillionsShs MillionsSales 6,000Cost of sales (5,000)Gross profit 1,000Distribution costs(150) Administration expenses(90)(240)Profit before interest and tax 760Interest expenses (10)Profit before tax 750Income tax expense (100)Profit after tax 650Dividend paid (60)Retained earnings for the year 590Additional informationDuring the year ending 31/12/2022 Machinery that cost Shs 160 Million were disposed of for Shs 120.5 Million. The accumulated depreciation for the disposed asset was Shs 46 Million.RequiredPrepare a statement of cash flows using the indirect method for the year ended 31/12/2022

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