StargazerLtd had the following financial statements for the period ending 31 December 2014: Stargazer Ltd Income statement as a 31 December 2014 $'000 Sales Cost of Goods sold Gross Profit Expenses Wages and salaries Insurance expense Other expense $'000 272 (143) 129 saa (40) 89 90 Interest received Profit before tax Tax expense Net Profit after tax 26 $ 64 2013 $'000 16 97 203 (43) Stargazer Ltd Balance sheet as at 31 December 2014 $'000 Assets Cash 11 A/c Receivable 50 Inventories Prepaid insurance expense Land and Buildings 129 Plant and machinery (at cost) 216 Less: Accumulated depreciation (51) Total assets $384 Liabilities A/c Payable 15 Income tax payable Short term loan 125 Accrued expenses 10 Total liabilities Equity Share Capital 133 Retained profits 75 Total equity 208 Total liabilities and equity $384 $342 47 18 26 118 $176 $191 123 28 151 $342 Additional information: All sales were on credit. There were no sales of land, plant or machinery during the period. There was a share of issue during the period An additional short-term loan was taken during the period for cash and $10,000 of the loans was repaid during the period. Question 3 A (7 Marks) Required: Prepare the cash flows from OPERATING activities for Stargazer Ltd for 31 December 2014 using the DIRECT method. Stargazer Company Cash Flow Statement 31 December 2014 Cash flows from Operating Activities Question 3 B (2 Marks) Required: Prepare the cash flows from INVESTING activities for Stargazer Ltd for 31 December 2014 using the DIRECT method. Stargazer Company Cash Flow Statement 31 December 2014 Cash flows from Investing Activities Question 3 C (4 Marks) Required: Prepare the cash flows from FINANCING activities for Stargazer Ltd for 31 December 2014 using the DIRECT method. Stargazer Company Cash Flow Statement 31 December 2014 Cash flows from Financing Activities Question 3 D (1 Mark) Required: Reconcile total cash flow to the opening and closing balance of cash. Stargazer Company Cash Flow Statement 31 December 2014