Question 1 The statements of financial position of White Knight Limited for 2018 and 2019 are shown below. White Knight Limited Statement of Financial Position as at 31 December 2018 2019 L Cost Dep'n Carrying Cost or Dep'n Carrying amount reval'n amount Non-current Assets Property 75,000 75,000 125,000 125,000 Plant and equipment 22.200 6.200 16,000 39,000 8.900 30,100 97-200 6.200 91,000 Current Assets Inventory 7,000 Trade receivables 5,000 164,000 8.900 155,100 11,000 3,700 Bank 1,000 500 Total Assets 13,000 104,000 15,200 170,300 Current Liabilities Trade payables 5,500 6.800 Tax liability 1,000 1,500 6,500 8,300 Non-current Liabilities Debentures Total Liabilities 5,000 11,500 3,000 11.300 Equity Share capital 80,000 Share premium 1,500 90,000 2.500 Revaluation reserve 50,000 Retained earnings 11,000 16,500 Total Equity 92,500 Total Liabilities and 104,000 159,000 170,300 Equity Additional information During the year ended 31 December 2019 Property was revalued Additional plant and equipment were purchased. There were no other disposals or purchases of non-current assets Taxation paid totaled 1,000 Dividends paid totaled 2,000 The income statement for the year ended 31 December 2019 include: - Depreciation charges, 2,700 Finance costs, 400 Taxation of 1,500 You are required to prepare a statement of cash flows for the year ended 31 December 2019 and comment on the main points highlighted by the statement 61 Page