Libra Ltd is a public listed company. The comparative figures for Statement of Profit or Loss for two years are shown below:

Statement of Profit or Loss for the years ended 31 December:

	2013	2012
	$	$
Revenue	2,100,000	1,250,000
Cost of sales	(890,000)	(580,000)
Gross Profit	1,210,000	670,000
Loss on sale of equipment	(30,000)	(20,000)
Dividend income	23,000	18,000
Operating expenses	(445,000)	(287,000)
Finance costs	(42,000)	(21,000)
Profit before tax	716,000	360,000
Income tax expense	(45,000)	(29,000)
Profit for the year	671,000	331,000

The following are the changes to the items on the Statement of Financial Position of Libra Ltd from 31 December 2012 to 31 December 2013:

Non-current Assets	Increase/(decrease)
	$
Land	120,000
Property, Plant & Equipment	(28,000)
Current Assets
Cash at Bank	305,500
Prepayments	8,000
Trade Receivables	(13,000)
Inventories	56,000
Shareholders' Equity
Ordinary Share Capital	80,000
Revaluation Reserve	40,000
Retained Earnings	180,000
Non-current Liabilities
5% Debentures	40,000
Current Liabilities
Trade Payables	39,000
Accrued Expenses	(26,000)
Dividends Payable	100,000
Tax Payable	(4,500)

Additional Information:

1. The equipment which was sold during the year had a net book value of $33,000 at the time of sale.
2. All purchases and sales were made on credit.
3. The cash at bank balance as at 31 December 2012 was $20,000.
4. There was a 1 for 4 bonus issue on 1 January 2013 funded from the retained earnings account. The ordinary share capital as at 31 December 2012 comprised of 100,000 ordinary shares at $1 each.
5. The depreciation on property, plant & equipment of $83,000 was charged to the Statement of Profit or Loss (included in operating expenses) before deriving the net profit for the year ended 31 December 2013.
6. There was no sale of land but a revaluation was made during the year 2013.
7. There were no dividends receivable or finance cost payable.

Required:

1. Prepare the Statement of Cash Flows for the year ended 31 December 2013 using the Indirect Method. Show all workings.
2. Prepare an extract of the Statement of Cash Flows using the Direct Method, showing only the section on cash flow from operating activities.
3. Analyse and comment on Libra Ltds cash flows for the year ended 31 December 2013.

Libra Ltd is a public listed company. The comparative figures for Statement of Profit or Loss for two years are shown below: Statement of Profit or Loss for the years ended 31 December: 2013 2012 S S Revenue 2.100,000 1.250,000 Cost of sales (890,000) (580,000) Gross Profit 1,210,000 670,000 Loss on sale of equipment (30,000) (20,000) Dividend income 23,000 18,000 Operating expenses (445,000) (287,000) Finance costs (42,000) (21,000) Profit before tax 716,000 360,000 Income tax expense (45,000) (29,000) Profit for the year 671.000 331,000 The following are the changes to the items on the Statement of Financial Position of Libra Ltd from 31 December 2012 to 31 December 2013: Non-current Assets Increase/(decrease) S Land 120,000 Property, Plant & Equipment (28,000) Current Assets Cash at Bank 305,500 Prepayments 8,000 Trade Receivables (13,000) Inventories 56,000 Shareholders' Equity Ordinary Share Capital 80,000 Revaluation Reserve 40,000 Retained Earings 180,000 Non-current Liabilities 5% Debentures 40,000 Current Liabilities Trade Payables 39,000 Accrued Expenses (26,000) Dividends Payable 100,000 Tax Payable (4,500) Additional Information: 1. The equipment which was sold during the year had a net book value of $33,000 at the time of sale. 2. All purchases and sales were made on credit. 3. The cash at bank balance as at 31 December 2012 was $20,000. 4. There was a 1 for 4 bonus issue on 1 January 2013 funded from the retained earnings account. The ordinary share capital as at 31 December 2012 comprised of 100,000 ordinary shares at Si each 5. The depreciation on property, plant & equipment of S83,000 was charged to the Statement of Profit or Loss (included in operating expenses) before deriving the net profit for the year ended 31 December 2013. 6. There was no sale of land but a revaluation was made during the year 2013. 7. There were no dividends receivable or finance cost payable. Required: a. Prepare the Statement of Cash Flows for the year ended 31 December 2013 using the Indirect Method. Show all workings b. Prepare an extract of the Statement of Cash Flows using the Direct Method, showing only the section on cash flow from operating activities. c. Analyse and comment on Libra Ltd's cash flows for the year ended 31 December 2013