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, Land and Building	75,045	60,780
Current Assets
Inventory	21,975	10,860
Accounts Receivables	9,563	11,903
Cash at bank	17,070	7,463
Sundry debtors	9,563	11,903
Total Assets	133,215	102,908
Equity and Liabilities
Capital and Reserves
Equity Share Capital	52,500	37,500
Free reserves	7,500	5,250
Share Premium	8,250	5,250
Retained Earnings	19,275	12,930
	87,525	60,930
Non Current Liabilities
12% Bonds	3,938	7,875
Current Liabilities
Accounts Payable	13,425	11,190
Proposed Dividend	7,875	5,625
Taxation	20,453	17,288
	41,753	34,103
Total Equity and Liabilities	133,215	102,908

Additional Information

Interest paid for bonds was RO1463 during the year

Depreciation on buildings was RO5580

Fixed assets whose value was RO 8685 was sold for a loss of RO1050 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 the 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)