a)Correct the Cash Flow Statement for the year ended 31 December 2019.(5 marks)

b)Analyse the completed cash flow and advise the business on its use of operating, investing and financing cash flows. In your answer you must refer to the phase/stage of operation. (2 marks)

Darwin Products Ltd Statement of Cash Flows for the year ended 31 December 2019 $ $ Cash flows from operating activities Proceeds from long-term debt 168,500 Receipts from customers 23,600 Payment of dividends to shareholders (5,400) Payments to employees (51,000) Net cash provided by operating activities 135,700 Cash flows from investing activities Proceeds from issue of shares 20.000 Depreciation expense (16,500) Acquisition of building 150,000 Profit on sale of equipment 1,600 Interest paid (14,500) Net cash provided in investing activities 250,600 Cash flows from financing activities Proceeds received from sale of equipment 42,000 Payments to suppliers (35,080) Income tax paid 25,000 Net cash provided by financing activities 31,920 Net increase in cash for the year 768,220 Cash balance as at the 1 st Jan 2019 15,400 Cash balance as at the 31 December 2019 783,620