Question 2. The following statements of financial positions for the year ended 31st December 2019 and 2020 have been prepared for Happy Limited, Statement of financial positions at: 31.12.20 31.12.19 Non-current assets Plant and machinery at cost 35,000 35,000 Less: Depreciation (8,000) (6,000) 27,000 29,000 Investments at cost 20,000 Current assets Inventory 36,000 24,000 Trade receivables 22,000 11,000 Cash 1,000 58,000 36,000 85,000 85,000 Capital and reserves Ordinary share capital 40,000 40,000 Share premium account 5,000 5,000 Retained earnings 6,000 3,000 Shareholders' funds 51,000 48,000 Non-current liabilities Loans 9,000 Current liabilities Trade payables 29,000 28,000 Bank overdraft 5,000 34,000 85,000 85,000 Additional information: There were no purchases or sales of plant and machinery during the year. Required 1. Mrs Happy has asked you to prepare Happy Limited's statement of cash flows for the year ended 31st December 2020. 2. Write a short memo to Mrs Happy explaining the findings of your statement of cash flow