Q.3 The comparative balance sheet of C Ltd. for June 30, 2014 and 2013 is as follows: June 30,2014 June 30.2013 Assets Cash Rs. 82,000 Rs. 64.800 Trade receivables (net) 104,800 91,000 Inventories 127,400 108.900 Investments 90,000 Land 102,000 Equipment 425,700 329,700 Accumulated depreciation (171.800) (135.00) 670,100 S4600 Liabilities and Stockholders' Equity Accounts payable (merchandise ereditors) 70.900 63.000 Accrued expenses 6,100 5.000 Dividends payable 14.400 12.000 Common stock, Rs.40 par 360,000 300,000 Paid-in capital in excess of par common stock 31.400 19,400 Retained earnings 187.300 149.200 670.100 548.600 The income statement for the year ended June 30, 2014 is as follows: Sales Rs.1.194.000 Cost of merchandise sold 208900 Gross profit 485100 Operating expenses: Depreciation expense Rs. 36.000 Other operating expenses 336,000 Total operating expenses 372.000 Operating income 113.100 Other income: Gain on sale of investments 8.000 Income before income tax 121,100 Income tax 32.600 Net income XR SOD The following additional information was taken from the records of C Limited: a) Equipment and land were acquired for cash. b) There were no disposals of equipment during the year. c) The investments were sold for Rs.98,000. d) The common stock was issued for cash. e) There was a Rs.50,400 debit to Retained Earnings for cash dividends declared. Instructions Prepare a statement of cash flows, using the direct and indirect method both. ********** Page 2 of 2