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Additional questions 1. The following data was obtained from the books of Madeline as at December 31, 2016: 2016 s S S Cost Depn NBV 756,000 64,000 692,000 50.000 742,000 Statement of financial position as at December 31: 2015 s s S Non-Current Assets Cost Depn NBV Tangible Assets 565,600 43,500 522,100 Goodwill 65.000 587,100 Current Assets Stock 35,000 Short Term Investment 10,000 Debtors 7,200 Bank 0 7.000 59.200 646,300 Capital & Reserves Share Capital ($1 Ord Shares) 200,000 Share Premium 20,000 General Reserves 37,000 Retained Earnings 121.000 378,000 Non-Current Liabilities 10% Debenture 212,300 12,000 35,000 13,000 54,000 12.000 126.000 868.000 Cash 250,000 35,000 37,000 57.000 379,000 427,000 Current Liabilities Creditors Tax Payable Accounts Payable 22,000 14.000 20.000 56.000 646,300 42,000 10,000 10.000 62.000 868.000 2016 Condensed statement of profit or loss Sales Gross profit Profit before tax Tax Profit after tax Dividends Transfer to reserves Profit for the year Retained earnings b/d Retained earnings c/d 870,000 350,000 (64,000) (0) (64,000 (0) (0) (64,000) 121,000 57.000 Note: During the year equipment costing 25,000 with a book value of 18,000 was sold for 12,500 Required: a. Prepare the cash flow statement for the year ending December 31, 2016. b. The directors are very pleased with performance of the firm for the year given the net cashflow. Discuss, making direct references to items in the cash flow statement