Question 1 Smilbo Smaggins plc has been manufacturing cutlery for many years. It provided the following financial statements: Statements of financial position at 30 April 2012 $ $ 2011 $ $ 82 500 Non-current assets Plant and machinery 64 900 Office equipment 34 519 117 019 38 355 103 255 Current assets Inventories Trade receivables Cash and cash equivalents 18 758 17 623 27 754 64 135 181 154 16 521 12 517 6 459 35 497 138 752 Total assets Current liabilities Trade payables Taxation 22 758 5 350 18 654 4 200 28 108 22 854 30 000 Non-current liabilities 4% Debentures 2020 50 000 Net assets 123 046 65 898 65 898 Equity Ordinary share capital 60 000 40 000 Share premium 18 000 8 000 Retained earnings 45 046 17 898 123 046 Income statement for the year ended 30 April 2012 $ Revenue 396 672 Cost of sales 259 329 Gross profit 137 343 Distribution costs 32 357 Administrative expenses 70 438 Profit from operations 34 548 Finance costs 1 600 Profit before taxation 32 948 Taxation 5 800 Profit attributable to equity holders 27 148 Additional information: 1 The debentures were redeemed at par. 2 Plant and machinery costing $27 500 was sold during the year for $10 000. It had been depreciated by $19 600. 3 Additional machinery was purchased at a cost of $35 000. There is no depreciation charge in the year of acquisition. 4 There were no acquisitions or disposals of office equipment during the year. REQUIRED (a) Prepare a statement of cash flow follow indirect method