. The Balance sheet reveals the firm's assets, liabilities and owners' equity (net worth). But the cash position of the company also forms a very prominent position in order to know the liquidity of the company. The balance sheet items (in OMR) are taken from Magrib Ltd. for the years 2018 and 2019 respectively:

	2018	2019
Assets
Furniture, Equipment and buildings	100,060	81,040
Current Assets
Inventory	29,300	14,480
Sundry debtors	12,750	15,870
Bank	22,760	9,950
Short term loan	12,750	15,870
Total Assets	177,620	137,210
Equity and Liabilities
Capital and Reserves
Ordinary Share Capital	70,000	50,000
Revaluation reserves	10,000	7,000
Share Premium	11,000	7,000
Retained Earnings	25,700	17,240
	116,700	81,240
Non-Current Liabilities
12% Long term loan	5,250	10,500
Current Liabilities
Sundry creditors	17,900	14,920
Proposed Dividend	10,500	7,500
Taxation	27,270	23,050
	55,670	45,470
Total Equity and Liabilities	177,620	137,210

Additional Information

Interest paid on long term loan was RO1950 during the year

Depreciation on the non-current Asset was RO 7440

Building with a book value of RO11,580 was sold for a loss of RO1400 during the year

1. From the above Balance sheet items, you are required to calculate: a) Profit before Interest and Tax and prepare b) Cash flow statement for the year 2019(6 marks)
2. In Cash flow statement, certain items are added and certain items are deducted. From the Cash flow statement, you have prepared, comment on the reasons for adding or deducting those items. (4 marks)