Question 2 (Army Plc) The following relates to Army Plc. The statements of financial position and the statements of comprehensive income are as provided below: Army Plc Turn Over Army Plc Other information 1. Army Pic provided depreciation on Buildings of 34,000, and 50,000 on Plant and equipment for the year 2018. 2. During the year 2018 , Army Plc revalued its Land which led to a loss of 130,000. This was deducted from the revaluation reserve in the Statement of changes in shareholders' equity. 3. Army Pic disposed of Plant and Equipment costing 90,000 for 10,000 incurring a loss of E12,000. 4. Property Plant and Equipment comprised Land, Buildings and Plant \& Equipment: 5. The accumulated depreciation on Buildings as at 1 January 2018 was E732,000 and for Plant and Equipment it was E162,000. 6. There were no additional purchases or disposals of intangible assets. 7. Depreciation expenses, amortization expenses and losses on disposal of assets are charged to operating expenses by the company. 8. Army Plc deciared and paid a dividend of E1,160,000 during the year a. Prepare the Statement of Cash Flows in accordance with IAS 7 for the year ended 31 December 2018 using the indirect methoul for Army Plc. (20 marks) b. Discuss, broadly, how you could use cash flow statement to analyze the performance of companies. (10 marks) c. Explain in detail your view of the performance of Army Pic based on your calculation in (a) and your arguments of (b) (5 marks) (Total 35 marks) Question 2 (Army Plc) The following relates to Army Plc. The statements of financial position and the statements of comprehensive income are as provided below: Army Plc Turn Over Army Plc Other information 1. Army Pic provided depreciation on Buildings of 34,000, and 50,000 on Plant and equipment for the year 2018. 2. During the year 2018 , Army Plc revalued its Land which led to a loss of 130,000. This was deducted from the revaluation reserve in the Statement of changes in shareholders' equity. 3. Army Pic disposed of Plant and Equipment costing 90,000 for 10,000 incurring a loss of E12,000. 4. Property Plant and Equipment comprised Land, Buildings and Plant \& Equipment: 5. The accumulated depreciation on Buildings as at 1 January 2018 was E732,000 and for Plant and Equipment it was E162,000. 6. There were no additional purchases or disposals of intangible assets. 7. Depreciation expenses, amortization expenses and losses on disposal of assets are charged to operating expenses by the company. 8. Army Plc deciared and paid a dividend of E1,160,000 during the year a. Prepare the Statement of Cash Flows in accordance with IAS 7 for the year ended 31 December 2018 using the indirect methoul for Army Plc. (20 marks) b. Discuss, broadly, how you could use cash flow statement to analyze the performance of companies. (10 marks) c. Explain in detail your view of the performance of Army Pic based on your calculation in (a) and your arguments of (b) (5 marks) (Total 35 marks)