QUESTION $3[30$ MARKS$]$

The directors of Kim Limited provide the following statements of financial position at $31$

March:

Additional information:

The following information relates to the year ended $31$ March $2023$:

The profit from operations was $$90,000.$

During the year non$-$current assets with a cost of $$72,000$ and accumulated

depreciation of $$57,000$ were sold for $$24,000.$

The depreciation charge for the year was $$36,000.$ All non$-$current assets held at the

end of the financial year are depreciated over $25$ years using the straight$-$line

method.

Interest paid for the year was $$27,000.$

Dividends paid during the year were $$75,000.$

The taxation charge was $$60,000.$

You are required to:

$($a$)$ prepare a Cash Flow Statement for the year ended $31$ March $2023.$

$($b$)$ Comment on the change in cash and cash equivalents over the period and identify

two reasons to justify such change