Question 1 The following information was extracted from the books of Sweet River Ltd as at September 30, 2013: 2012 2013 ASSETS Cash Accounts Receivable Inventory Prepaid Expenses Land Equipment Accumulated Depreciation 318,000 30,000 320,000 16,000 280,000 382,000 24,000 340,000 12,000 280,000 320,000 (32,000) 964,000 1,326,000 120,000 40,000 LIABILITIES AND EQUITY Accounts Payable Accrued Expenses Income Tax Payable Long Term Loan Ordinary Share Capital Retained Earnings 104,000 30,000 24,000 260,000 720,000 188,000 964,000 720,000 84,000 1,326,000 Sweet River Ltd Income Statement for the year Ended September 30, 2013 1,950,000 (1,320,000) 630,000 Revenue Cost of sales Gross Profit Operating Expenses Depreciation Loss on Sale of Equipment Income Before Taxation Income Tax Net Income 352,000 36,000 2,000 (390,000) 240,000 (72,000) 168,000 Addition Information: i. In 2013 the company declared and paid a dividend of $64,000 in cash. ii. Long Term loan was issued at face value for $260,000 in cash. iii. Equipment costing $40,000 was sold for $34,000 cash when the book value of the equipment was $36,000. Required: Prepare a Statement of Cash flow for the year ended September 30, 2013. (Total 25 marks)