Question 3 Planet Accessories Company reported the following statement of financial positions and income statement st year-end 2017. fellition, divident, totaling kshs.1.0 million were pail. STATEMEN OF FINANCIAL POSITION AS AT DECEMBER JI. 2012 2016 ASSETS Kshs.000 Kshs.000 Cash 826 553 Accounts receivable 8,950 8.000 Inventories 11.600 10,100 Prepaid insurance 400 300 Property, plant & equipment 8.750 3,735 Less Accumulated depreciation (2,900) (1,900) Land 5.850 4.850 Total Assets 25,638 LIABILITIES AND EQUITY Rent payable Wages payable Lon payable, long-term Share capital Ksh 10 per value Retained emings Total liabilities & shareholders equity 3,750 1,750 9,200 5,400 13,376 4,000 1,400 5,200 4,400 10,638 3.3.476 25,638 INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales Revenue Cost of goods sold Gross profit Operating Expenses Advertising Depreciation Kshs.'000 135.800 (54.300) 81,500 Rent Operating income Interest Expense Income before takes Twen Net income (17,029) (1.000) (4.800) (14.255) (33,400) 11,016 (650) 10,366 03.628) 6.79 Page 3 of 4 Required: a) Assume the company uses the direct format to prepare its statement of cash flows. What amounts would be reported on the 2017 statement of cash flows for each of the following? i) Cash collections from customers? 11) Cash paid to suppliers of inventory? iii) Cash paid for insurance? iv) Cash paid for rent? ) Cash paid for depreciation? vi) Cash paid for wages? (12 marks) b) What items and amounts would be reported under cash flow from investing activities? c) What item and amounts would be reported under cash flows from financing activities. (4 marks) d) Prepare a statement of cash flows using the direct format. (6 marks)