Question 4 Set out below are the financial statements of Sparta Ltd. Sparta Ltd Income statement for the year ended 31 December 2018 Profit from operations Finance cost Profit before tax Taxation Profit for the period $000 4,677 (60) 4,617 (400) 4,217 Balance sheets as at 31 December 2018 $000 2017 $000 Non-current assets Property, plant and equipment Intangible assets 12,900 800 13,700 8,000 300 8,300 100 Current assets Inventories Accounts receivable Cash 280 1,290 55 1,350 __45 1.625 15.325 1,495 9,795 Equity and liabilities Capital and reserves Ordinary share capital Retained earnings 1,995 11,407 13,402 1,130 7.540 8,670 Non-current liabilities Long-term loans 600 500 Current liabilities Bank overdraft Accounts payable Interest payable Taxation 313 430 40 540 275 25 325 1.323 15.325 625 9,795 Additional information: 1. During the year dividends paid were $350,000. 2. The total proceeds from the disposal of old plant with carrying amount $800,000 were $700,000. 3. New plant was purchased for $6,000,000. 4. Shares were issued for cash to finance the purchase of new plant. Required: Prepare for Sparta Ltd a statement of cash flows for the year ended 31 December 2018 using the indirect method in compliance with either US GAAP or IFRS. (20 marks)