QUESTION 1 -DELTA LTD INCOME STATEMENT FOR 31 DEC 2019 2019 '000 Revenue 5,250 Cost of sales (3,730) Gross profit 1,520 Expenses (868) Profit before tax 652 Corporation tax (150) Profit after tax 502 STATEMENT OF FINANCIAL POSITION AT 31 DEC 2019 2018 2019 ASSETS '000 '000 Non- current Assets Land at cost 900 960 PPE at cost 900 1,150 Less: Accum.Depreciation (230) (350) Net Book Value 1,570 1,760 Current Assets Inventories 374 490 Trade Receivables 276 243 Cash 30 207 Total Assets 2,250 2,700 EQUITIES AND LIABILITIES Share Capital - 1 shares 600 750 Share Premium 100 220 Retained Earnings 376 758 Current Liabilities Trade Payables 420 380 Corporation Tax 140 180 Interest payable 14 12 Non- current Liabilities Debentures - 8% 600 400 Total Equity and Liabilities 2,250 2,700 You are given the following information: Plant which originally cost 90,000 was sold for cash of 20,000. The profit/loss on disposal is included in expenses. Accumulated depreciation relating to the plant sold amounted to 63,000. The debentures of 200,000 were repaid on 30 June 2018. Interest expense is included in expenses. Company issued 150,000 new shares at 1.80 per share during the year. Dividend payment for the year was 120,000. Required Prepare the statement of cash flows fully under the indirect method. Show your supporting workings. ( 35 marks)