Need help with part b

5 Section B Answer any two questions from this section 3 X Pte Limited provided the following financial information: 31 December 2016 31 December 2017 Non-current assets at net book value Current assets Current abilities Non-current liabilities (5% debenture) Net loss for the year S 300000 72000 54000 S 2 68 000 36000 40000 (130000) The following intormation is also available 1 Non-current assets had a cost of $500000 at 31 December 2016 During the year ended 31 December 2017: a non-current asset which had cost $30000 and had accumulated depreciation of $26000 had been scrapped non-current assets casting S80 000 had been purchased. 2 2 The company depreciates its non-current assets at 10% on the cost at the year end The bank balance as per the cash book at 31 December 2016 was $8000 debit. It was $5000 credit at 31 December 2017 4 3 The debenture was issued on 1 January 2017. Interest on debenture has been paid to date. On 1 October 2017 the company issued 100000 ordinary shares of $1 each at $1.25. $. 5 No dividends had been paid during 2017 REQUIRED (a) Stato two benefits and two limitations to a business of preparing a cash low statement. 142 (b) Prepare a cash flow statement for the year ended 31 December 2017 for X Pte Limited [12] (c) Comment on the performance of the company for the year ended 31 December 2017 on the basis of the cash flow statement you have prepared and other relevant information 14 Additional information At 31 December 2016 the equity of the company comprised 200 000 ordinary shares of Si each. with the balance made up of retained profits REQUIRED (d) Prepare a statement to show the equity section of the balance sheet at 31 December 2017 151 [Total: 251 UCLES & MOF 2018 5755/700 [Turn over