The following information for Dream company is available: Income statement for the year ended 31 December 2014 Revenue Cost of sales Gross profit Operating expenses Depreciation Operating profit Gain on disposal of motor van Profit for the year 000 6,000 2.000 4,000 1,700 300 2,000 120 2, 120 The non-current assets and non-current liabilities sections of the statement of financial position at 31 December are as follows: Non-current assets Land, at valuation Buildings Motor vans Equipment 2013 000 2,400 4,000 1,800 1.000 2014 000 3,200 4,900 2,700 1,175 Non-current liabilities 2013 000 800 420 2014 000 1,200 595 10% debentures Other long term debts The following additional information is relevant: (1) The land was revalued at the end of the year 2014. This revaluation resulted in an increase of 800,000, which has been recorded in the company's statement of financial position at 31 December 2014. (2) The written down value of the motor van sold during the year was 190,000. (3) Depreciation expense of 300,000 shown on the income statement includes depreciation of 120,000 for buildings, 100,000 for motor vans, and 80,000 for equipment (4) Acquisition of new equipment during 2014 was in exchange for long term debts issued during the year. (5) During 2014 an additional 400,000 of new debentures were issued. c) People usually assume that profits and cash should always be the same, since both arise from the same business activities. Do you agree with this and why? (2 marks)