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Problem 8 From the following Balance Sheet of PK Ltd, for the years ending 31-12-2011 and 31-12-2012, prepare cash flow statement. Liabilities 2011 2012 Assets 2011 2012 $ $ $ $ Equity share capital 2,15,000 2,75,000 Goodwill 20,000 Reserves 40,000 40,000 Plant & Mach. 1,12,950 1,16,200 Profit and Loss A/c 39,690 41,220 Land and Building 1,48,500 1,44,250 Provision for tax 40,000 50,000 Current assets 1,98,530 1,70,730 Bank loan 59,510 Cash 7,500 7,700 Current liabilities 73,280 52,660 4,67,480 4,58,880 4,67,480 4,58,880 The following information is also provided: 1. A dividend of $26,000 was paid during the year 2012 2. Profit before tax for the year was $62,530 3. During the year 2012, the company paid tax of $ 25,000 4. During the year, the company purchased another company and paid $60,000 in share capital. It acquired stock $ 21,640 and plant $ 18,360. 5. It purchased machinery costing $5,650 during the year