QUESTION 1: FALCON LTD The following is Income Statement of Falcon Ltd for the year ended 31 Dec 2021: 2021 '000 Revenue 15,650 Cost of sales (8,500) Gross profit 7,150 Expenses (1,200) Interest expense (42) Profit before tax 5,908 Tax expense (1,200) Profit after tax 4,708 The following is the Statement of Financial Position of Falcon Ltd as at 31 Dec 2020 and 2021: 2020 20211 ASSETS '000 '000 Non-current Assets Land 2,650 2,670 Equipment Cost 2,000 2,620 Less: Accum.Depreciation (400) (770) Net Book Value of Equipment 1,600 1,850 Current Assets Inventories 1,350 1,400 Trade Receivables 200 156 Cash 120 5.479 Total Assets 5,920 11,555 EQUITIES AND LIABILITIES Share Capital - 1 shares 3,000 3,500 Share Premium 1,500 1,750 Revaluation Reserve 200 220 Retained Earnings 170 4,740 Current Liabilities Trade Payables 125 80 Tax Payable 900 1,200 Interest Payable 25 20 Non-current Liabilities Debenture Loan O 45 Total Equity and Liabilities 5,920 11,555 You are informed that: a)Equipment which originally cost 300,000 was sold for cash of 350,000. Accumulated depreciation relating to the plant sold amounted to 50,000.The profit/loss on disposal is included in expenses in Income Statement. b)The company issued 500,000 ordinary shares at a price of 1.5 each. c)Dividend payment for the year was 138,000. d)Increase in Land's value of 20,000 relates to its revaluation during this year. Required: Prepare the complete statement of cash flows for Falcon Ltd for the year ended 31 Dec 2021. Show supporting workings. (40 marks)