SECTION B: Answer ALL questions from this section. Question 11: ABA plc's income statements for the years ended 31 December 2020 and 2019 and the statements of financial position as at 31 December 2020 and 2019 are as follows: ABA plc: Income statements for the years ended 31 December 2020 and 2019 E2020 2019 Sales revenue Cost of sales Gross profit Distribution expenses Administrative expenses Operating profit Interest expense Profit before taxation Taxation profit for the year 440,000 [250.0001 190,000 (20,000) 110 700) 59,300 (30,000) 29,300 (10,000) 19,300 499,000 335.000) 164,000 (27,000) (100,000) 37,000 (13,000) 24,000 (8,000) 16,000 ABA plc statements of financial position as at 31 December 2020 and 2019 2020 2019 99,900 52,800 219,000 56,300 43,100 318.400 418,300 202,000 44,700 61,300 308,000 360,800 Assets Won-current assets Plant and machinery Current assets Inventories Trade receivables Cash at bank Total current assets Total assets Equity and liabilities Non-current liabilities Borrowings debentures Current liabilities Trade payables Taxation payables Total current liabilities Equity Ordinary shares of 0.50 each Capital reserves Retained earnings Total equity Total equity and liabilities 83,000 48,000 50,500 20,000 70.500 73,300 20,000 93.300 141,000 20,000 103,800 264,800 418 300 105,000 20,000 94,500 219.500 360 800 MN1405 Spring 2021 Included in operating expenses are the following depreciation charges for the year 2020: 52.700 There were no non-current asset disposals in either year. Dividends were paid of 10,000 during 2020. All interest expense was paid. Required: a. Prepare ONLY the cash flows from operating activities part of the statement of cash flows for the year 2020 (if calculations are needed they must be clearly shown) (26 marks) b. Comment on the cash position of the business (only regarding cash flows from operating activities part). (4 marks) (Total: 30 marks)