The 2019 accounting records of Sydney Ltd reveal the following transactions and events.

Cash balance at the beginning of the period 16,500

Profit on sale of equipment 12,500

Income tax payments 127,500

Cash paid to suppliers 1,200,000

Cash received from customers 2,100,000

Investment in buildings 1,125,000

Proceeds from issue of share 600,000

Depreciation expense 337,500

Interest payments 37,500

Payments of dividends to shareholders 12,500

Proceeds from sale of equipment 57,000

Payments to employees 687,500

Proceeds on borrowings from long-term debt 425,000

Required

a)Prepare a Cash Flow Statement as for the year ended December 2019.(5marks)

b)Analyse the completed cash flow and advise the business on its use of operating, investing and financing cash flows. Refer to the phase/stage of operation.(2marks)