Question 1: (25 Marks) You have been provided below with the Income Statement for the year ended 31st December 2021 and the two Statements of Financial Position as at 31st December 2020 and as at 31st December 2021 for Better Shoes Ltd. Better Shoes Ltd. Income Statement for year ended 31 Dec 2021 P000 Revenue 3,430 Cost of Sales (1,900 Gross Profit 1,530 Dividend Received 65 Loss on disposal of Plant (32) Organizational Expenses (406) Supply Expenses (820) Profit from Operations 337 Finance Costs (45) Profit before tax 292 Tax (80) Profit for the year 212 Eff Date: 17-05-2021 Better Shoes Ltd. Statement of Financial Position as at 31st Dec 2021 2021 2020 Non-Current Assets P000 P000 Property, Plant & Equipment 943 950 Land & Buildings 2,100 1,800 3,043 2.750 Current Assets Inventories Trade Receivables Cash & Cash Equivalents 320 97 43 460 190 210 78 478 Total Assets 3,503 3,228 QP-ASR-001 Rev 000 Equity Share Capital (P1 per share) Share Premium Retained Earnings 1,010 320 1,401 2,731 900 230 1,042 2,172 Non-Current Liabilities Bank Loans 473 736 Current Liabilities Trade Payables Tax Liability 219 80 299 150 120 320 Page 2 of 5 L. Total Liabilities 772 1,056 Total Equity & Liabilities 3,503 3,228 Additional Information: Depreciation that was charged on Plant, Property and Equipment for the year ended 31st December 2021 was P43,000. During the year, a plant that had been bought for P320,000 5 years ago was sold for P218,000. The accumulated depreciation on the plant in 2021 was P70,000. During the year ended 31st December 2021, dividends of P203, 000 were paid. All sales and purchases were on credit. Other expenses were paid for in cash. Required: Prepare Better Shoes Ltd.'s cash flow statement for the year ended 318 December 2021 in accordance with IAS 7. (25 marks)