QUESTION 2 (20 Marks) REQUIRED Use the information provided below to complete the Cash Flow Statement of Silverline Ltd for the year ended 31 December 2019. Use the following format as a guide. (Commence with the R556 000 for the profit before working capital changes.) INFORMATION Silverline Ltds Statement of Comprehensive Income for the year ended 31 December 2019 and Statement of Financial Position as at 31 December 2018 and 2019 are as follows: STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2019 Sales (all credit) Cost of sales R 1 152 000 (614 000) Gross profit 538 000 Other operating income 42 000 Gross operating income Distribution expenses Administrative expenses 580 000 (130 000) (52 000) Operating profit Interest income Interest expense 398 000 34 000 (46 000) Profit before tax 386 000 Income tax (92 000) Profit after tax 294 000 SS STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2019 R 2018 R ASSETS Non-current assets 1 132 000 1 100 000 Property, plant and equipment: 1 132 000 1 100 000 Current assets 360 000 330 000 Inventories 82 000 88 000 Trade and other receivables (All accounts receivable) 200 000 212 000 Cash and cash equivalents 78 000 30 000 Total assets 1 492 000 1 430 000 2019 R 2018 R EQUITY AND LIABILITIES Equity 726 000 352 000 Ordinary share capital Retained earnings 480 000 246 000 300 000 52 000 Non-current liabilities 500 000 800 000 Long-term borrowings 500 000 800 000 Current liabilities 266 000 278 000 Trade and other payables 220 000 246 000 SARS: Income tax 46 000 32 000 Total equity and liabilities 1 492 000 1 430 000 Additional information 1. Additional plant and machinery were purchased during 2019. There were no other non-current asset acquisitions or disposals. Depreciation for 2019 amounted to R158 000. 2. An interim dividend of R100 000 was paid on ordinary shares during 2019. No final dividends were declared.