Question 1 Gingerbread Ltd is a cake and biscuit company with a 31 March year end. The Statements of Financial Position for years ended 31 March 2021 and 31 March 2020 are shown below. Gingerbread Ltd Statement of Financial Position as at: 31-Mar-21 31-Mar-20 000 000 000 000 ASSETS Non-current assets Property, plant and equipment 8,500 7,000 Investments 900 300 Total non-current assets 9,400 7,300 Current assets Inventories 1,200 1,800 Trade receivables 900 420 Cash and cash equivalents 340 200 Total current assets 2,440 2,420 TOTAL ASSETS 11,840 9,720 5,000 EQUITY AND LIABILITIES Equity Share capital Share premium account Revaluation surplus Retained earnings Total equity 800 6,000 1,000 360 3,300 10,660 220 2,000 8,020 Non current liabilities Long-term loan 500 1000 Current liabilities Trade payables Income tax Total current liabilities TOTAL EQUITY AND LIABILITIES 630 50 600 100 680 11,840 700 9,720 Further information: 1. On 1 January 2021, an item of equipment was sold for 300,000. This equipment originally cost 600,000 and had an accumulated depreciation of 400,000 at the date of disposal. 2. Depreciation charged for the year was 1,000,000. 3. Finance costs for the year were 55,000 and the Corporation Tax charge for the year was 100,000. 4. During the year a dividend of 250,000 was approved and declared. 5. There have been no revaluations to investments during the year. REQUIRED a) Prepare the Statement of Cash flows for Gingerbread Ltd for the year ended 31 March 2021 in accordance with IAS 7 - Statement of Cash flows