The following are the Statement of Financial Position and Statement of Changes in Equity of XYZ Ltd. for the year to 31 December 2019.

Statement of Financial Position as at 31 December 2019

2019 2019 2018 2018 Non-current Assets Property & Equipment Investments 294,500 15,500 310,000 229,300 41,000 270,300 Current Assets Inventories Trade Receivables Bank 106,000 107,000 240,500 453,500 763,500 140,000 52,500 2,600 195,100 465,400 Equity & Liabilities Capital & Reserves Ordinary Share Capital Share Premium Revaluation Surplus Retained Earnings 112,000 86,000 22,500 488,400 708,900 52,000 65,000 7,500 223,900 348,400 Current Liabilities Trade Payables Taxation Bank Overdraft 39,000 15,600 0 54,600 763,500 78,000 26,000 13,000 117,000 465,400

Statement of Changes in Equity for the year ending 31 December 2019

	Share Capital	Share Premium	Revaluation Surplus	Retained Earnings	Total
As at 1January2019 Comprehensive Income Dividends Share issue As at 31 December 2019	52,000 60,000 112000	65,000 21,000 86000	7,500 15000 0 0 22500	223,900 303,500 (39,000) 0 488,400	348,400 318,500 (39,000) 81,000 708,900

Disclosure Note for Non-current Assets

	Property	Equipment	Total
Cost As at 1 January 2019 Additions Revaluations Disposals As at 31 December 2019 Accumulated Depreciation As at 1 January 2019 Disposals Charge for the year As at 31 December 2019 Net Book Value As at 31 December 2019 As at 31 December 2018	120,500 32,500 15,000 0 168,000 15,700 0 1,800 17,500 150,500 104,800	171,500 89,000 0 (37,000) 223,500 47,000 (25,000) 57,500 79,500 144,000 124,500	292,000 121,500 15,000 (37,000) 391,500 62,700 (25,000) 59,300 97,000 294,500 229,300

ADDITIONAL INFORMATION:

(1) Equipment was sold during the year for 7,800,000.

(2) Investments which cost 25,500,000 were sold for 33,000,000 during the year.

(3) The corporation tax charge for the year to 31 December 2019 was 13,000,000.

(4) There were no interest charges.

REQUIREMENTS:

(A) Prepare a statement of Cash Flow forXYZ Ltd. for the year ending 31 December 2019 in accordance with IAS 7 Cash Flow Statements.

(B) Explain, in your own words, why Depreciation and Profit on Sale of a non-current asset would appear on the statement of Cash Flows.

(C) Describe, with examples, TWO benefits from a Lenders perspective of reviewing the information in your Cash Flow statement.