QUESTION ONEBelow are extracts from the financial statements of Poochie Ltd:Statement of profit or loss for the year ended $31$ March $20$X$1$Sales revenue$30,650$Cost of sales$(26,000)$Gross profit$4,650$Distribution costs$(900)$Administrative expenses$(500)$Profit from operations$3,250$Investment income$680$Finance costs$(400)$Profit before tax$3,530$Income tax expense$(300)$Statements of financial position:Noncurrent AssetsProperty, plant and equipmentInvestmentsCurrent assetsInventoriesTrade and other receivablesCash and cash equivalentsTotal AssetsEquity and liabilities$31$ March $20$X$1$ShSh$2,2802,5004,78031$ March $20$X$0$ShSh$8502,5003,3501,0001,9004101,9501,2001603,3108,0903,3106,660$Capital and reservesShare capital$1,000900$Share premium$500350$Retained earnings$3,4101,3804,9102,630$Noncurrent liabilitiesLong term borrowings $($inc$.$ finance leases$)2,3001,040$Current liabilitiesTrade and other payables$2501,890$Interest payable$230100$Taxation$4001,0008802,990$Total equity and liabilities$8,0906,660$Additional information:$1.$ Profit from operations is after charging depreciation on the property, plant and equipment of Sh$450\mathrm{.}2.$ During the year ended $31$ March $20$X$1,$ plant and machinery costing Sh$80$ and with accumulated depreciation of Sh$60,$ was sold for Sh$20\mathrm{.}3.$ During the year ended $31$ March $20$X$1,$ the company acquired property, plant and equipment costing Sh$1,900,$ of which Sh$900$ was acquired by means of finance leases.Cash payments of Sh$1,000$ were made to purchase property, plant and equipment$\mathrm{.}4.$ Sh$90$ was paid under finance leases$\mathrm{.}5.$ The receivables at the end of $20$X$1$ includes Sh$100$ of interest receivable. There was no balance at the beginning of the year$\mathrm{.}6.$ Investment income of Sh$680$ is made up of Sh$300$ interest receivable and Sh$380$dividends received$\mathrm{.}7.$ Dividends paid during the year were Sh$1,200.$RequiredPrepare a statement of cash flows for Poochie Ltd for the year ended $31$March $20$X$1$ in compliance with IAS $7$ Statement of Cash Flows using the indirect method. $(20$ Marks$)$