Question 3 (34 marks) Etunda Lid is a retailer shop that specializes in the selling of agricultural implements. The following financial information is extracted from the financial statements of Erunda Lid. Fundad Statement of Financial position as at 31 December 2020 NS 2019 NS ASSETS Non-current assets Land and buildings at revaluation Plant and machinery at cost price Accumulated depreciation on plant and machinery Net Book Value 280 000 380 000 70 000) 310000 200 000 3-48000 (56000) 292000 Current assets Inventory Trade and other recovables Cash and cash equivalent 140 000 153 600 216000 70400 1010000 344000 154 800 119 300 O 460 000 200 000 40 000 760000 0000 200 000 0 500 000 EQUITY AND LIABILITIES Share capital Accumulated profit Revaluation reserve Non-current liabilities Long-term loan Current liabilities Trade and other payables Shareholders for dividende Bank overdra 30 000 30 000 296000 15400 2.30 000 210000 20 000 o 100 109600 876 000 Statement of profit or loss and other comprehensive income for the year eaded 31 December 2020 (Abstract) NS Revenue 350 000 Cost of sales 160000 Profit before 112000 Tax 32000 Page 20 of 24 Profit for the year The following information was communicated to you: A new machine was purchased during the year to replace an old machine. The old machine was originally purchased for NS 12 000 sold for NS 3 200. On selling date the accumulated depreciation was N$ 7600 Land and building was revalued on June 2020 to NS 280 000 . Included in trade and other payables is an amount owed to Inland and Revenue Profit for the year 80 000 The following information was communicated to you: A new machine was purchased during the year to replace an old machine. The old machine was originally purchased for N$ 12 000 sold for N$ 3 200. On selling date, the accumulated depreciation was N$ 7 600. Land and building was revalued on 1 June 2020 to N$ 280 000 Included in trade and other payables is an amount owed to Inland and Revenue: 2020 2019 NS NS 10 000 14 400 Interest paid during the year amounted to N$ 28 000. Depreciation amounted to NS 21 600 for the year. Dividends were declared during the current year. Required: 1. Prepared the statement of cash flows (direct method) for Etunda Ltd for the year ended 31 December 2020 in accordance with IFRS. (28 marks) 2. Prepare the note for the reconciliation of profit before tax with cash flow from operating activities (6 marks). No comparative figures are required