Question 2 Part 1: Star ple's financial statements for the year ending 31 Dec 2018 are as follows: Statement of Financial Position as at 31 December 2017 000 000 000 2018 000 625 Non-current assets Land at valuation Equipment at cost Less: depreciation 750 3,750 () (1,875) 5,000 (2,500) 1,875 2.500 Current Assets Inventory Trade and other receivables Cash 1,500 1.650 150 3,300 1,250 2,125 _420 3,795 Current liabilities Trade payables Taxation 8% debenture loan 2018 1.750 1,300 375 3,425 1,670 1,625 3,295 Net current assets Net assets (125) 2,375 500 3,750 Non-current liabilities 6%% debenture loan 2021 2.375 250 3.500 Equity Ordinary shares of 1 Share premium account Revaluation reserve Retained earnings 275 75 188 1.837 2.375 425 240 313 2.522 3.500 Income Statement for the year to 31 December 2018 000 Revenue 19,250 Cost of sales (13.500) Gross profit 5,750 Profit on disposal of equipment 100 5,850 Administrative expenses Operating profit Interest expense Profit before taxation Taxation Profit for the financial year (2,975) 2,875 (37) 2,838 (1.625) 1.213 She also tells you that: 1. The company sold some equipment for cash, which had been depreciated to a net book value of 375,000. The land was revalued as at 31 December 2018. 3. Included in administrative expenses is the depreciation charge for the year on equipment, 875,000. The land is not depreciated. Dividends of 528,000 were paid during the year. 2 4 Required: Prepare a cash flow statement for Star ple for the year to 31 December 2018