One The Purple Lilac has provided the following financial statement as at December 31, 2017 BALANCE SHEET 2016 2017 Non-Current Assets Koodwill Tangible Assets Long term Investment Current Assets Depa NBV 28 NEV 1.200.000330,000 1,370,000 2.000.000/420000190000 230,000 1 Closing Stock 50,000 Debtors 35,000 Short term levestiment 40,000 Bank Cash Total Assets Capital & Reserves 15,000 45.000 85.000 40,000 1,300 128,500 2008,500 11,000 25,000 2.13.0 Share Capital 670,000 General Reserves 210,000 $45,000 210 Revaluation Reserves 40,000 Retained Profit 200.0001.320.000 115.00075.000 Non Current Liability 10% Debenture 650,000 Current Liabilities Crediton 33.500 Dividends Payable 45000 Tax Payable 15.000 Interest Owing Bank Overdra 85.000 238.50 Total Equity & Liabilities 130,000 15,000 CONDENSED INCOME STATEMENT 2017 PBIT 210,00 216000 CONDENSED INCOME STATEMENT 2017 PRIT (230,000 Les interest 315,000 PAT j3150) Add Retained Earning bid 200,000 Total Profit for the Year Less Transfer to Reserves 2 Lew Dividends Retained Earning od Note :During the year non-current asset costing $140,000 with a book value or $110,000 was sold at a profit of $20,000 Required 1. Prepare the cash flow statement for 2017 (21 marks) 2. Use appropriate items in the cash flow statement to comment on 4 The state of liquidity in the company (2 marks) A The state of profitability in the company (2 marks)