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) 2020 2019 ASSETS ,000 ,000 Land 75,000 70,000 Buildings 200,000 200,000 Accumulated depreciation-buildings (21,000) (11,000) Equipment 193,000 68,000 Accumulated depreciation-equipment (28,000) (10,000) le Prepaid expenses 4,000 6,000 Inventory 54,000 0 Accounts receivable 68,000 26,000 Cash 54,000 37,000 599,000 386,000 EQUITY AND LIABILITIES Share capital-ordinary (1 par value) 220,000 60,000 Retained earnings 206,000 136,000 Bonds payable 140,000 150,000 Accounts payable 23,000 40,000 Accrued expenses payable- 10,000 02 599,000 386,000 2) Dragon Ltd. Income Statement for the year ended at December 31st 2020 (all amounts in thousands of pounds, ,000) 2020 ,000 Sales revenue 890,000 Cost of goods sold 465,000 Operating expenses 221,000 Interest expense 12,000 Loss on disposal of plant assets 2,000 Income before income taxes 190,000 Income tax expense 65,000 Net income 125,000 3) Additional informaiton (all amounts in thousands of pounds, ,000): 1. Operating expenses include depreciation expense of 33,000.- 2. Equipment with a cost of 41,000 and a book value of 36,000 was sold for 34,000 cash. 3. Land was sold at its book value for cash. 4. Interest expense of 12,000 was paid in cash. 5. Equipment with a cost of 166,000 was purchased for cash. 6. Bonds of 10,000 were redeemed at their face value for cash. 7. Ordinary shares (1 par value) of 130,000 were issued for cash. 8. Cash dividends of 55,000 were declared and paid in 2020. 9. Ordinary shares of 30,000 were issued in exchange for land. 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 on the sales of land in the cash flows from investing activities. (2 marks) (Total 20 marks)