The following financial statements of Sunrise Ltd for the year ended 30 September 2018 have been presented to you. SUNRISE LTD Extract from the statement of profit or loss and other comprehensive income for the year ended 30 September 2018 2018 NS 525 000 1 600 (169 950) 356 650 (59 550) 297 100 (83 188) 2014 NS 450 000 1 200 (185 088) 266 112 (92 147) 173 965 (48 710) Gross profit Dividend income Operating expenses Profit before finance costs and taxation Finance costs Profit before tax Income tax expense Profit for the year 125 255 213 912 SUNRISE LTD Extract from the statement of changes in equity for the year ended 30 September 2018 2018 N$ 2017 N$ Retained Retained earnings 180 380 213 912 earnings 169 125 125 255 Opening balance Profit for the year Share issue costs Transfer to non-distributable reserve Ordinary dividends Preference dividends Closing balance (1 150) (35 000) (112 500) (12 500) 233 142 (105 000) (9 000) 180 380 SUNRISE LTD Statement of financial position on 30 September 2014 2017 2018 N$ ASSETS Non-current assets: Land and buildings Equipment at cost Accumulated depreciation: Equipment Vehicles at cost Accumulated depreciation: Vehicles Investments NS 1 365 000 1 100 000 200 000 (60 000) 1 266 000 835 000 240 000 (84 000) 180 000 (30 000) 125 000 125 000 Current assets: Inventory Trade debtors Prepaid expenses Provisional tax Cash and cash equivalents TOTAL ASSETS 187 550 263 950 73 000 67 675 3 150 65 600 73 600 2 980 3 220 42 150 120 125 1529 950 1 552 550 EQUITY AND LIABILITIES Capital and reserves: Ordinary share capital Preference share capital Non-distributable reserves Retained earnings 1018 142 612 500 137 500 35 000 233 142 792 880 612 500 180 380 Non-current liabilities 16% mortgage bond 372 188 575 920 372 188 575 920 139 620 48 175 10 000 6445 75 000 183 750 Current liabilities: 71 250 50 000 Trade creditors Interest payable Income tax payable Shareholders for dividends (including withholding tax) TOTAL EQUITY AND LIABILITIES 62 500 1 552 550 1 529 950 Additional information: 1. The company maintains a gross profit percentage of 30% on sales 2. Trade debtors for the 2018 financial year include an allowance for credit losses that was created on 30 September 2018 at 4% of outstanding debtors. There was no allowance for credit losses in the 2017 financial year. During the year, 250 000 preference shares were issued at 55c per share. Share 3. issue costs of N$1 150 were paid. The following transactions with respect to non-current assets took place: 4. Land and buildings were sold for N$260 000. No further sales or purchases were made during the current financial year. The above profits/losses on the sale of assets are already included in the profit before tax No equipment was sold during the year. REQUIRED 1) Calculate the cash received from customers and the cash paid to suppliers and employees figures. (10 Marks) 2) Prepare the Statement of Cash Flows of Sunrise Limited for the year ended 30 September 2018 to conform with the requirements of IAS 7 using the direct method. (14 Marks)