Question 3 (35 Marks) Here are the financial statements of Premier Suites Ltd on 31 December 2020 Premier Suites Ltd Ahridond Statement of profit or loss\& other Comprehensive Income for the year ended 31 Premier Sultes Ltd Premier suites ttd Notes to the financial statements for the vear endod at hacumil. anan. Premier Suites Ltd Statement of chanees in eauitv for the voar andod 31 necomber 2020 Additional informationt 1. Favorable market conditions enabled the company to place 200000 ardinary shares privately with instatutional investors at 550 per share and aho to insue 600006% preference shares to the poblic at NS 1 per share. - The issue of new shares was to redeem the mortgace debentures - The company paid share issue epences of N\$1000 and this amount was writiten off at 31 Deceraber 2020. 2. The company had sold a smail plot in December 2020 . The cost of the land coposed of was NS4 000 (No other flixed arsets were sold or scrapped during the vear) 3. Included in the profit before taxation is interest paid of NSS 400 , and interest received of MS 1300 . 4. Dividends dedared consists of: - Ordinary dividends NS10 000 - Prelerence dividends N\$6000 \begin{tabular}{|c|l|c|} \hline \multicolumn{2}{|l|}{ REQUIRED: } & MARKS \\ \hline 3.1 & Prepare a statement of Cash Flow of Premier Suites Ltd for the year ended 31 December 2020 to comply with the requirements of IAS 7. Using the direct method. & 25 \\ \hline 3.2 & Prepare the following notes to comply with the requirements of IAS 7 and Companies Act 24 of 2008 : 3.2.1 Reconciliation of the profit before tax to cash generated from operating activities. 3.2.2 Accounting policy and notes for cash and cash equivalent & 5 \\ \hline TOTAL & & 35 \\ \hline \end{tabular} Question 3 (35 Marks) Here are the financial statements of Premier Suites Ltd on 31 December 2020 Premier Suites Ltd Ahridond Statement of profit or loss\& other Comprehensive Income for the year ended 31 Premier Sultes Ltd Premier suites ttd Notes to the financial statements for the vear endod at hacumil. anan. Premier Suites Ltd Statement of chanees in eauitv for the voar andod 31 necomber 2020 Additional informationt 1. Favorable market conditions enabled the company to place 200000 ardinary shares privately with instatutional investors at 550 per share and aho to insue 600006% preference shares to the poblic at NS 1 per share. - The issue of new shares was to redeem the mortgace debentures - The company paid share issue epences of N\$1000 and this amount was writiten off at 31 Deceraber 2020. 2. The company had sold a smail plot in December 2020 . The cost of the land coposed of was NS4 000 (No other flixed arsets were sold or scrapped during the vear) 3. Included in the profit before taxation is interest paid of NSS 400 , and interest received of MS 1300 . 4. Dividends dedared consists of: - Ordinary dividends NS10 000 - Prelerence dividends N\$6000 \begin{tabular}{|c|l|c|} \hline \multicolumn{2}{|l|}{ REQUIRED: } & MARKS \\ \hline 3.1 & Prepare a statement of Cash Flow of Premier Suites Ltd for the year ended 31 December 2020 to comply with the requirements of IAS 7. Using the direct method. & 25 \\ \hline 3.2 & Prepare the following notes to comply with the requirements of IAS 7 and Companies Act 24 of 2008 : 3.2.1 Reconciliation of the profit before tax to cash generated from operating activities. 3.2.2 Accounting policy and notes for cash and cash equivalent & 5 \\ \hline TOTAL & & 35 \\ \hline \end{tabular}