Vincent Kruger has traded as Shange Stores for the past five years. The following are the balances extracted from the ledger of Shange Stores at 31 December 2020 R 2019 R 45 000 CREDITS Accounts payable Bank overdraft Long term loan: Metro Bank Capital: Vincent Kruger Accumulated depreciation: Plant and machinery Gain on revaluation of land 90 000 46 500 150 000 432 870 84 368 49 500 R853 238 165 000 352 470 82 650 R645 120 91 500 DEBITS Accounts receivable Bank Land, at valuation Plant and machinery, at cost Inventory Vehicles, at carrying amount 408 000 229 500 85 168 39 070 R853 238 72 000 12 450 340 500 166 650 35 700 17 820 R645 120 The following information related to the 2020 financial year 1. Vincent made an additional contribution of a vehicle valued at R25 750 as well as cash and withdrew R75 150 for his personal use. 2. 3 A profit of R100 500 was generated in 2019 and R107 370 was generated in 2020 During the year, plant and machinery with a cost of R9 000, and which had been depreciated by R6 150, was sold at a profit of R900. Later in the year, a new machine was purchased to replace the plant and machinery sold. Inventory of R2 500 was donated to a local children's home There were no sales of land during the year. There were no purchases or sales of vehicles during the year. 5. 6. REQUIRED: (a) Prepare a Statement of Cash Flows for Shange Stores for the year ended 31 December 2020. Vincent has asked you to explain why, although he is showing a profit, his bank balance has (b) (1) decreased Note: Show all workings clearly. Work to the nearest R1