[Total 30 marks) Question 2 The following summarized statements of financial position relate to Track Limited: Statements of financial position at 30 June 2014 2013 N$000 N$000 Non-current assets at cost 650 500 Less accumulated depreciation 300 200 350 300 Investment at cost 50 200 400 500 Current assets: Inventory 700 400 Accounts receivable 1,550 1,350 Cash at bank 100 2.250 1,850 Total assets 2,650 2,350 Current liabilities Bank overdraft 60 Accounts payable 920 800 Taxation 190 230 Total liabilities 1,170 1,030 Page 3 of 7 1,480 1,320 Net assets Equity Called-up share capital (1 ordinary shares) Share premium account Retained profits 750 200 530 1.480 500 150 670 1.320 Additional information: 1. During the year to 30 June 2014, some non-current assets originally costing N$25,000 had been sold for N$20,000 in cash. The accumulated depreciation on these non-current assets at 30 June 2013 amounted to N$10,000. Similarly, some of the investments originally costing N$150,000 had been sold for cash at their book value. 2. The taxation balances disclosed in the above statements of financial position represent the actual amounts agreed with the revenue and customs. All taxes were paid on their due dates. Advance corporation tax may be ignored. 3. A dividend of N$130,000 was paid during the year to 30 June 2014. 4. During the year to 30 June 2014, the company made a 1-for-2 rights issue of 250 ordinary N$ shares at 120p per share. Required: Prepare Track Ltd's statement of cash flows for the year to 30 June 2014. (30 marks) [Total 30 marks]