The following information was obtained from the accounting records of First Ltd: Summarized financial position for year ended 31 December

2 019 2 018

ASSETS R R Land and Buildings 104 865 95 470 Investments NIL 1 100 Machinery at carrying amount 6 500 1 600 Cost 8 700 5 400 Accumulated depreciation - 2 200 - 3 800 Inventories 12 000 9 000 Trade debtors 10 205 30 700 Cash at Bank 13 500 NIL TOTAL ASSETS 147 070 137 870 EQUITY & LIABILITIES Equity 100 070 78 470 Ordinary share capital 85 000 68 000 Retained earnings 15 070 10 470 Liabilities 47 000 59 400 Long term loan 20 000 30 000 Bank overdraft NIL 700 Trade creditors 6 600 9 200 Income tax payable 2 200 4 100 Dividends payable 18 400 15 400 TOTAL EQUITY AND LIABILITIES 147 070 137 870

Additional information:

1. The following was extracted from the statement of comprehensive income and statement of changes in equity for financial year ended 31 December 2019.

Income:R

Profit on sale of land and buildings 7 000

Profit on sale of machinery 300

Expenses:

Depreciation 1 000

Administration expenses 29 730

Selling expenses 12 005

Loss on sale of investment 500

Interest expense20

Taxation expense 18 000

Profit for the year 23 000

Appropriation:

Dividends declared18 400

2.The investments of the company were sold for R600 cash.

3.A portion of the land and buildings with a cost price of R11 000 was sold during the year for R18 000 cash. Additional land was purchased for R20 395 cash.

4.Machinery to the value of R6 400 was purchased for cash. Machinery with a carrying amount of R500 was sold at a profit of R300.

5.The company paid a portion of the long term liability. No further long term loans were taken.

6.The company issued new ordinary shares during the year.

Required:

Draft the statement of cash flows for the year ended 31 December 2019 method in compliance with international financial reporting standards in as much as the given information allows. The indirect method is in use. Show all workings