The financial statements of Avenger Limited for the year ended 31 December 2018 are presented below:

The following information relating to financial year ended 31 December 2018 was made available:

1. Equipment costing $20,000 was sold for $2,000 during the year. The equipment was bought several years ago and has accumulated depreciation of $16,000.

2. Dividends of $10,000 were paid during the year.

Required:

1. Prepare a Statement of Cash Flows for Avenger Limited, using the indirect method, for the year ended 31 December 2018.

Statement of Comprehensive Income for the year ended 31 December 2018 Sales Less: Cost of goods sold Gross profit $ 140,000 (70,000) 70,000 Less : Depreciation expense Loss on disposal of equipment Other operating expenses Interest expense (15,000) (2,000) (35,500) (5,000) Add: Investment income Net profit before tax Less : Income tax expense Net profit after tax 25,000 37,500 (4,000) 33,500 Statement of financial position as at 31 December 2018 Cash & cash equivalents Accounts Receivable Inventory Investments, at cost Equipment, cost Accumulated depreciation 31-Dec-18 31-Dec-17 $ $ 9,600 25,000 20,500 30,500 36,000 24,500 40,000 30,000 100,000 75,000 (40,000) (41,000) 166,100 144,000 Share capital Retained earnings Long-term loan Tax payable Interest payable Accounts payable 80,000 34,500 16,000 10,000 5,600 20,000 166,100 70,000 11,000 10,000 30,000 7,000 16,000 144,000