Question 2 The following are extracts from the statement of financial performance and statement of financial position of Chan Designers Bhd for the year ended 31 July 2021 Extract of the statement of financial position as at: 31.7.2021 $'000 19000 12500 4500 700 NIL 31.7.2020 $'000 25500 4600 2000 NIL 1500 Non-current assets Inventory Accounts Receivable Corporation tax refund Cash at bank Current liabilities Bank loan Corporation tax Bank overdraft Finance lease obligations Trade creditors 5000 NIL 1400 1700 4700 NIL 3300 NIL 800 4200 Extract of the statement of financial performance for the year ended 31 July 2021 Revenue Cost of Sales Gross Profit Operating expenses Interest expense Profit/(loss) before tax Corporation tax refund Loss for the year $'000 55000 43800 11200 12000 1000 (1800) 700 (1100) Additionalinformation 1. Details of the Non-current assets Leasehold property Freehold Land and Buildings 31.7.2021 31.7.2020 $'000 $'000 NIL 8800 19000 16700 19000 25500 2. During the year, Chan Designers Bhd, sold the leasehold property for $8.5 million. There were no disposals or additions for the Freehold land and buildings during the year. 3. The depreciation for the non current assets were charged to cost of sales as follows: Leasehold property $200,000 Freehold land and buildings $3,500,000 4. Interest expenses were paid in the year. Required (a) Prepare the extract of the cash flow from operating activities of Chan Designers Bhd for the year ended 31 July 2021. Show all relevant workings (b) As a Fiance Director, advise Chan Designers of the concerns you have regarding the results in part (a). [4+4= Total 8 marks] Answer on this space. You can use additional pages if need be