Question 4 (25 Marks) You are the accountant of Bitter Sweet Ltd, a national retailer of dark chocolate. The statement of profit or loss and statement of changes in equity for the year ended 30 September 2021, and the statement of financial position at 30 September 2021 are shown below. The Managing Director is concerned that while the statement of profit or loss reflects a profit, there has been a decline in the working capital, and overdraft facilities have been required. The following additional information is relevant: 1. On 1 July 2021,200000 ordinary shares were issued at a price of N$1.50 each 2. The land and building were purchased on 30 September 2020 for total cost of $200000. Land is not depreciated. The building is depreciated on the straight-line basis ower a period of 30 years to a nil residual value. 3. On 31 March 2021 all the equipment used by Bitter Sweet Ltd was sold forN\$200550. It had been originally purchased for N$505000. This equipment was replaced on 1 April 2021 with new equipment which cost N$750000. This equipment is to be depreciated at 10% per annum on the straight-line method toa nil residual value. 4. Included in the trade other receivables balance at 30 September 2021 is an amount of N$2750 relating to insurance expenses prepaid. The amount included in the trade and other receivable balance for 2020 was N$190. 5. Included in the trade and other payable balance at 30 September 2021 is an amount owing for electricity expenses. The electricity expenses amount to N$15000 per year. However, no amount has been paid for the last three monthsusage. 6. A dividend for 5 cents per share was declared on 25 September 2021. It is to be paid on 30 Nowember 2021. 7. Operating expenses comprises: YOU ARE REQUIRED TO: 1. Prepare a statement of cash flows of Bitter Sweet Ltd for the year ended 30 September 2021, using the direct method. (20 marks) 2. Prepare the note for the reconciliation of profit before tax to the cash generated from operations