Question 6: Answer the following question (11 marks) From the following information of Tiles Ltd, prepare the cash flow operations (CFO) under indirect method for the year 2005. The company reports that net income for the year 2005 as 30,000; It is derived after considering depreciation is 8,000, gain on sale of equipment is 2,000 and provision for bad debts is 1000. Balance sheet data Accounts receivable Inventories Accounts payable Salaries payable Equipment Accumulated depreciation Bonds payable Common stock Retained earnings 2005 2004 $36.000 $ 42,000 28.000 25,000 31,000 35,000 2,000 1,000 60,000 40,000 12,000 16.000 50.000 100.000 150.000 100,000 38,000 20.000 Note: Common Stock means equity share capital; Bonds payable means long term borrowings, Answer: a. Cash from Operating Activities (CFO) CFO