Sierra Ltd Statement of Financial Position as at 31 Dec 2016 Changes Increased Decrease 2016 2015 Assets Cash 55 000 38 000 17 000 Increase Accounts receivables 69 000 27 000 Inventory 55 000 Prepaid expensed 5000 7 000 42 000 Increase 55 000 Increase 2000 Decrease 25 000 Decrease 125 000 Increase 18 000 Increase Land 46 000 71 000 194 000 69 000 Equipment Accumulated depreciation - equipment (29 000) (11000) Total 395 000 201 000 24 000 41 000 17 000 Decrease Liabilities and equity Accounts payable Accrued expense payable Convertible notes payable 11 000 11 000 Increase 111 000 151 000 40 000 Decrease Share capital 220 000 60 000 160 000 Increase Retained earnings 206 000 136 000 20 000 Increase Total S72.000 388 000 Sierra Ltd Retained earnings 206 000 136 000 70 000 increase Total 572 000 388 000 Sierra Ltd Statement of Profit or Loss for year ended 31 Dec 2016 $ Sales 885 000 460 000 220 000 15 000 695 000 Cost of sales Operating Expense Interest expense Profit before tax Income tax expense Profit 190 000 70 000 120 000 Additional information: Operating expenses include depreciation expense of $35 000 Cash dividends of 555000 were deciated and in 2016 Intense of 512000 was paid in canh Land was sold staying amount for cash in 2016 DU3016. quiment with a cost of 5170 was purchased for at Equipment with a cost of 500 000 and carryinsamentos no 15 were redeemed to convert Downed to Not syncin d/quiz/attempt.php?attempt=358528cmid=208643 During 2016, equipment with a cost of $170 000 was purchased for cash. Equipment with a cost of $40 000 and carrying amount of $35 000 was sold In 2016, convertible notes of $15.000 were redeemed at their carrying amount for cash convertible notes of $30 000 were converted into ordinary shares issued at 530 000 in total Ordinary shares were issues for $120 000 in cash during 2016, Required: Prepare a statement of cash flows using the direct method. Show.computations (25 marks) Please note that a template/table has been provided. Please write your answers in the table. A BIE Sierra Ltd Statement of Cash Flows for the year onded 31 Dec 2016 Cash flows from operating activities