The Statements of Financial Position of Falmouth Limited at 31 December 2018 and 2019 are as follows.

	31 Dec. 2018	31 Dec. 2019
	$	$
Non-Current Asset (NBV)	334,000	356,000
Current Assets:
Inventory	64,000	60,000
Receivables	38, 000	91,000
Bank	-	13,600
	436,000	520,600
Share Capital and Reserves
$1 Ordinary shares	200,000	250,000
Share premium	-	25,000
Retained Earnings	160,600	186,600
Current Liabilities:
Payables	26.000	29,000
Proposed dividends	18,000	16,000
Taxation	14,000	14,000
Bank	17,400	-
	436,000	520,600

The summarized Statement of Comprehensive Income for the two years ended 31 December 2018 and 2019 are as follows:

	31 December 2018	31 December 2019
	$	$
Gross Profit	275,784	247,400
Expenses	(152,784)	(216,600)
profit on sale of fixed asset		25,200
Net profit before tax	123,000	56,000
Taxation	(18,000)	(14,000)
Net profit after tax	105,000	42,000

The following information is also available:

1. A non-current asset disposed of during the year, cost $68,000 and was sold for $27,600. Accumulated depreciation on the asset was $65,600.
2. The increase in the share capital was due to a rights issue
3. The company bought fixed assets (non-current assets) at cost $108 000 during the year.
4. A proposed dividend for 2019 of $16,000 was declared.

REQUIRED:

1. Prepare a Statement of Cash Flows for Falmouth Ltd for the year ended 31 December 2019 as per IAS 7 revised. (

2. Explain three (3) benefits of preparing a statement of cash flows