t of stion Question 2 (25 marks] Time left 2:45:02 Clara plc's statement of profit or loss for the year ended 31 December 2020 and statement of financial position at 31st December 2020 and 31st December 2019 were as follows: Clara plc Statement of profit or loss for the year ended 31st Dec 2020: Revenue Cost of Sales 000 720 (188) Gross Profit 532 Distribution costs (18) Administrative Expenses (94) Profit from operations 420 Finance costs (28) Profit before tax 392 Income Tax Expense (124) Profit for the period 268 Statement of financial position as at 31st December: 2020 2019 000 '000 ' 000 '000 Non Current Assets Cost 1,596 1,560 Depreciation (318) (224) 1,278 1,336 Current Assets Inventory 24 20 Trade receivables 66 50 Bank 38 56 138 126 Total Assets 1,416 1,462 Non Current Assets Cost Depreciation 1,596 1,560 (318) (224) 1,278 1,336 Current Assets Inventory 24 20 Trade receivables 66 50 Bank 38 56 138 126 Total Assets 1,416 1,462 EQUITY Share capital Share premium Retained Earnings 350 332 36 24 716 514 24 Non-Current Liabilities Borrowings Current Liabilities Trade Payables 200 500 12 6 102 86 114 1,416 92 1,462 Taxation Total Liabilities and Equity The following additional information is relevant. 1. Dividends totaling 66,000 were paid during the year 2. During the year, the company paid 90,000 for a new piece of machinery. 3. Included in the cost of sales is depreciation of 118,000. A loss on disposal of 18,000 has been included in distribution costs. Required: 1. Prepare a statement of cash flows for Clara PLC for the year ended 31st 2020 using the indirect method