Total: 29 Marks Question 2 Suggested time allocation: 52.2 Minutes resented below is the statement of financial position for Wattleup Ltd as at 31 December 2018 Wattleup Ltd Statement of Financial Position As at 31 December 2018 2018 2017 Assets 74,600 Cash (16,700) 127,200 275,000 22,800 Accounts Receivable 111,300 221,200 23,000 199,000 339,000 (97,600) 331,200 (67,000) 1.134,700 Inventory Prepaid Expenses Land 238,000 639,000 (111,400) 361,200 (89,900) 1445,200 Building Accumulated Depreciation-Building Equipment Accumulated Depreciation Equipment Liabilities and Shareholders Equity Accounts Payable Accrued Expense Payable Income Tax Payable Bond Payable Share Capital Retained Earnings 218,000 14,000 24,000 350,000 388,100 140,600 1.134.700 Examination of the company's income statement and general ledger accounts for the year ending 31 December 215,000 10,500 26,000 540,000 502,100 151,600 1445,200 2018 disclosed the following: Profit (after tax) was 2. Net Sales for the period depreciation) amounted to $152,900 Income tax expense for the year amounted to $115,700 4. 30,000 shares were issued at $3.80 5. Bonds of $100,000 were issued for cash An extension was added to the building at a cost of $300,000 cash In 2012, the company declared and paid $69,000 cash dividend Vacant land next to the company's plant was purchased for $129,000 with payment consisting of $39,000 cash and a bond payable for $90,000 9. Land with a carrying amount of $90,000 was sold for $125,000 10. Equipment costing $30,000 was purchased for cash. $80,000 were $875 600; Cost of Sales amounted to $525,300; Other Expenses (excluding 1. 3. 6. 7. 8 Required Prepare a statement of cash flows for Wattleup Ltd for the year ended 31 December 2018 using the direct method