The draft financial statements for Lynstone Limited for the year ending 31 March 2016 are as follows: Statement of profit or loss for the year ending 31 March 2016 $ Profit on ordinary activities Provision for tax on ordinary activities Profit on ordinary activities after tax 14.450 5.175 9.275 Supplementary notes 1) In calculating profit on ordinary activities, a depreciation charge of K2, 600 has been made 2)Also included in profit on ordinary activities is a loss of K400 on sale of plant and machinery for $500.It had originally cost $5,400 and had been depricaited at the time of sale by $4500 Statement of financial position as 31 March 31-Mar-15 31-Mar-16 $ $ $ $ Non-current assets Plant and machinery Less: Depreciation 40.625 -15,175.00 35,225 -13,275 25,450 21,950 Current assets Inventories Receivables Less: Allowance for receivables Bank and cash 22.925 10.100 -400 20.050 30.100 15.775 -725 14.700 52.675 59,850 Total assets 78.125 81,800 Equity and liabilities Issued share capital 25.000 33,750 Retained profit 30.000 39,275 Non-current liabilities Loan notes 7,500 Current liabilities Accounts payables Taxation 5.675 9.950 3.600 5,175 15.625 8.775 Total equity and liabilities 78,125 81.800 Required: a) Evaluate the relevance of the following headings in the statement of cash flows : 1) Cash flows from operating activities i) Cash flows from investing activities Cash flows from financing activities Using the information in the case study above, prepare the statement of cash flows for the year ending 31 March 2016 in accordance accordance with IAS7 Statement of cash flows