QUESTION 1 (15 Marks) Below is information relating to Singapore Enterprises Ltd for the year ended 31 December 2020. SINGAPORE ENTERPRISES Comparative Statement of Financial Position as at 31 December 2020 2020 2019 Assets Cash Accounts receivable Inventory Plant Accumulated depreciation Total Assets Liabilities and Equity Accounts payable Income tax payable Long Term Loan Share capital Total Liabilities and Equity $ 60,000 36,000 68,000 140,000 (60,000) $ 244.000 $ 26,000 28,000 70,000 156,000 (48,000) $ 232.000 $ 58,000 30,000 30,000 126,000 $ 244.000 $ 66,000 40,000 20,000 106,000 $ 232.000 SINGAPORE ENTERPRISES Income Statement for the year ended 31 December 2020 Sales $ 500,000 360,000 140,000 Less Cost of Sales Gross Profit Selling expenses Administrative expenses Interest expense Net profit before tax Income tax expense Net profit after tax 38,000 4,000 92,000 48,000 14,000 $ 34.000 Additional information: 1. The owner withdrew cash during the year. 2. During the year a machine was sold for $20,000 cash. This machine originally cost $30,000 and had accumulated depreciation of $10,000 at the time of sale. 3. Additional plant was purchased for cash. 4. All of the depreciation expense has been recorded in the selling expense category. 5. Accounts Payable pertains to inventory creditors. Inventory comprises food and liquor sold on cruises. All sales are credit basis. Required: Prepare a Statement of Cash Flows for Singapore Enterprises using the direct method