. 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 Irwin Ltd. for the years 2018 and 2019 respectively:

	2018	2019
Asset
Equipment, buildings and Land	104,062	84,282
Current Assets
Stock on 31st December	30,472	15,059
Bills Receivables	13,260	16,505
Cash at Bank Muscat	23,670	10,348
Prepaid expenses	13,260	16,505
Total Assets	184,725	142,698
Equity and Liabilities
Capital and Reserves
Ordinary Share Capital	72,800	52,000
General reserves	10,400	7,280
Share Premium	11,440	7,280
Retained Earnings	26,728	17,930
	121,368	84,490
Non Current Liabilities
13% Mortgage Bonds	5,460	10,920
Current Liabilities
Bills Payable	18,616	15,517
Proposed Dividend	10,920	7,800
Taxation	28,361	23,972
	57,897	47,289
Total Equity and Liabilities	184,725	142,698

Additional Information

Interest paid on mortgage bonds were RO2028 during the year

Depreciation charged on non-current Assets were RO7738

Equipment whose book value was RO12043 was sold for a loss of RO1456 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)