The Mac 10 Department Store produced the following data for 2022:

BALANCE SHEET AS AT DECEMBER 31,
	2021				2022
	$	$	$		$	$	$
Non-Current Assets	COST	DEPN	NBV		COST	DEPN	NBV
Goodwill			40,000				25,000
Building	300,000		300,000		450,000		450,000
Equipment	155,000	35,000	120,000		180,000	42,000	138,000
	455,000	35,000	460,000		630,000	42,000	613,000
Long Term Investments		120,000				140,000
			580,000				753,000
CURRENT ASSETS
Stock		20,000				18,000
Short Term Investment	22,000				25,000
Debtors		10,000				12,000
Bank		12,500				0
Cash		3,200	67,700			1,700	56,700
			647,700				809,700
EQUITY & LIABILITIES
Capital & Reserves
Share Capital ($1 Ord. Shares)		200,000				225,000
Share Premium		25,000				40,000
Reval. Reserve		0				150,000
General Reserves		22,500				55,000
Retained Earnings		120,000	367,500			195,000	665,000
Non-Current Liabilities
10% Debenture			214,700				91,200
CURRENT LIABILITIES
Creditors		16,500				15,000
Tax Payable		17,000				10,000
Interest Payable		10,000				8,500
Dividends Payable		22,000	65,500			20,000	53,500
			647,700				809,700

Additional information available was:

1. The building was revalued during the year.

2. Equipment costing 25,000 for which there was a provision for depreciation of 5,500

was sold for a profit of 6,000.

3. Dividends paid and proposed for the year amounted to 27,000

Required:

(a). Prepare the cash flow statement for the year. (20 marks)

(b) The Chairman of the board had expressed concern over the declining current assets, especially in the depletion of the bank balance. Using items in the cash flow statements and/or any other relevant information, explain the financial position and apparent stability of the company. (5 marks)