QUESTION 1 The following information was extracted from the accounting records of Belle Mare Limited: Statement of Comprehensive Income for the year ended 31 December Sales Cost of sales Gross profit Operating expenses Depreciation Other operating expenses Operating profit Interest on mortgage loan Profit before tax 2018 (R) 1 856 000 (1 280 000) 576 000 (291 200) 30 000 261 200 284 800 (24 000) 260 800 2017 (R) 1 200 ood (750 000) 450 000 (212 000 26000 186000 238 000 (72 000 166 000 (58 100 107 900 Income tax Profit after tax (90 240) 170 560 Statement of Financial Position as at 31 December 2018 (R) 2017 (R) ASSETS Non-current assets Property, plant and equipment Current assets Inventories (all Trading Inventory) Trade & other receivables Cash & cash equivalents 2 464 160 2464 1601 356 000 120 000 40 000 196 000 2820 1601 2 444 000 2 444 000 336 000 250 000 64 000 22 000 2 780 000 2018 (R) 2017 (R) 1 EQUITY AND LIABILITIES Equity Ordinary share capital (issued at R10 each) Retained income Non-current liability (Mortgage loan, 12% p.a.) Current liabilities Trade & other payables South African Revenue Services (income tax) Shareholders for dividends 2 437 560 2 180 000 1 257 560 200 000 182 600 98 0001 8 600 76 000 2 820 160 III toto 980 000 1760 000 220 000 600 OOO 200 ood 138 000 6000 56 000 2 780 000 Additional information * New shares were issued on 1 January 2018. Interim and final dividends for the year ended 31 December 2018 amounted to R133 000. * Fixed assets were sold at carrying (book) value during the year for R144 000. Required: Study the information provided above by Belle Mare Ltd and prepare the Statement of Cash Flows (using the indirect method) for the year ended 31 December 2018