QUESTION FIVE [25] The following information was obtained from the accounting records of First Ltd: Summarised financial position for year ended 31 December 2018 2019 R R 95 470 104 865 Nil 1 100 1 600 ASSETS Land and buildings Investments Machinery at carrying amount Cost Accumulated depreciation Inventories Trade debtors Cash at bank 6 500 8 700 (2 200) 12 000 5 400 (3 800) 9 000 10 205 30 700 13 500 Nil TOTAL ASSETS 147 070 137 870 EQUITY & LIABILITIES 100 070 78 470 Equity Ordinary share capital Retained earnings 85 000 68 000 15 070 10 470 47 000 59 400 20 000 30 000 Nil 700 Liabilities Long term loan Bank overdraft Trade creditors Income tax payable Dividends payable 6 600 2 000 9 200 4 100 15 400 18 400 TOTAL EQUITY AND LIABILITIES 147 070 137 870 BACHELOR OF COMMERCE LAW YEAR 1-ACADEMIC AND ASSESSMENT CALENDAR Additional information: 1. The following was extracted from the statement of comprehensive income and statement of changes in equity for financial year ended 31 December 2019. R Income: 7 000 Profit on sale of land and buildings Profit on sale of machinery 300 Expenses: Depreciation 1 000 Administration expenses 29 730 Selling expenses 12 005 Loss on sale of investment 500 Interest expense 20 Taxation expense 18 000 Profit for the year 23 000 Appropriation: Dividends declared 18 400 2. The investments of the company were sold for R600 cash. 3. A portion of the land and buildings with a cost price of R11 000 was sold during the year for R18 000 cash. Additional land was purchased for R20 395 cash. 4. Machinery to the value of R6 400 was purchased for cash. Machinery with a carrying amount of R500 was sold at a profit of R300. 5. The company paid a portion of the long term liability. No further long term loans were taken. 6. The company issued new ordinary shares during the year. BACHELOR OF COMMERCE LAW YEAR 1 - ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE Required: Draft the statement of cash flows for the year ended 31 December 2019 method in compliance with international financial reporting standards in as much as the given information allows. The indirect method is in use. Show all workings. (25)