QUESTION 1 (14 marks) The relevant information from the financial statements of Penrose Beauty Products Limited for 2016 vear is as follows: $000 185 Profit before tax (after interest Depreciation charged in arriving at operating rofit Interest expense At the beginning of the vear 2016 Inventories Accounts Receivable Accounts Payable At the end of the vear 2016 Inventories Accounts Receivable Accounts Payable 21 24 The following further information is available about ayments during the vear 2016 $000 50 26 29 Taxation paid Interest paid Dividends paid Required: (a) Use indirect method to prepare a statement of cash flows showing the detailed calculations for cash flows derived from operating activities (11 marks) (b) In deriving the cash geerated from operations, we add the depreciation expense for the period to the profit before taxation. Does this mean that depreciation is a source of cash? Explain your