Question 3 (25 marks) Other income (Gain on sale of equipment) Operating costs (comprising only depreciation costs Other costs (loss on sale of land) Profit before tax Tax expense Profit for year 1,500 (12,000) (100) 26,100 Lighthouse Ltd NIL 26,100 Statement of Financial position as at 31 December 2018 2018 5 2017 S Assets Non-current assets Equipment Land 27,200 28,000 30, 200 12,000 Notes to the financial statements: Current assets Inventory Trade Receivable Cash at bank 11,200 4,750 32,500 9,800 2,800 16,300 Total assets 103,650 71.100 During 2018, the company sold equipment for $21,500; The company sold land that had cost $6,000. Also common stock was issued to raise funds that were used to buy land that was valued at $22,000. There was no new Long Term Debt commitment in 2018. Equity and Liabilities Equity Share capital Retained earnings 47,000 47.100 25,000 33,400 Current liabilities Trade creditors (suppliers of inventoryl 3,750 4,900 Required: Non-current liabilities Long term debt 5,800 7,800 Total equity and liabilities 103,650 71,100 Income statement for the year ended 31 December 2018 (i) Prepare for Lighthouse Ltd the statement of cash flows for the year ended 31 December 2018 (19 marks) (ii) Compute the amount for Lighthouse Ltd (a) Annual purchases of inven- tory made by the firm for the year ended 31 December 2018 (2 marks) (b) Amount paid to suppliers of inventory during the year Sales Cost of sales Gross profit 5 61,200 (24,500) 36,700 Required: (i) (ii) Prepare for Lighthouse Ltd the statement of cash flows for the year ended 31 December 2018 (19 marks) Compute the amount for Lighthouse Ltd (a) Annual purchases of inventory made by the firm for the year ended 31 December 2018 (2 marks) (b) Amount paid to suppliers of inventory during the year ended 31 December 2018 (2 marks) (c) Amount received from trade customers for the year ended 31 December 2018 (2 marks)