Use the information below to prepare a statement of cash flow using the indirect method. 1) Dragon Ltd. Comparative Statements of financial position as at December 31st 2020 (all amounts in thousands of pounds, ,000) ASSETS Land 2020 2019 ,000 ,000 150,000 140,000 Buildings 400,000 400,000 Accumulated depreciation-buildings (42,000) (22,000) Equipment 386,000 136,000 Accumulated depreciation-equipment Prepaid expenses 8,000 (56,000) (20,000) 12,000 Inventory 108,000 10 Accounts receivable Cash EQUITY AND LIABILITIES 136,000 52,000 108,000 74,000 1,198,000 772,000 Share capital-ordinary (1 par value) 440,000 120,000 Retained earnings 412,000 272,000 Bonds payable 280,000 300,000 Accounts payable Accrued expenses payable + 2) Dragon Ltd. Income Statement for the year ended at Decemb ,000) 46,000 80,000 20,000 1,198,000 20 (all amounts in thousands of pounds, 772,000 Sales revenue Cost of goods sold Operating expenses Interest expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income 3) Additional informaiton (all amounts in thousands of pounds, ,000): 1. Operating expenses include depreciation expense of 66,000. 2. Equipment with a cost of 82,000 and a book value of 72,000 was sold for 68,000 cash. 3. Land was sold at its book value for cash. 4. Interest expense of 24,000 was paid in cash. 5. Equipment with a cost of 332,000 was purchased for cash. 6. 7. 8. Bonds of 20,000 were redeemed at their face value for cash. Ordinary shares (1 par value) of 260,000 were issued for cash. Cash dividends of 110,000 were declared and paid in 2020. 9. Ordinary shares of 60,000 were issued in exchange for land. 2020 ,000 1,780,000 930,000 442,000 24,000 4,000 380,000 130,000 250,000 Required: (a) Prepare the Dragon Ltd. Statement of Cash Flows - Indirect Method for the year ended at December 31st 2020 (all amounts in thousands of pounds, ,000) (18 marks) (b) Show your workings briefly on the sales of land in the cash flows from investing activities. (2 marks)