Income statement and B/S are provided in attached documents.

Question a:Prepare the statement of cash flows for Alderton Ltd for the year ended 31 December 2017, using the indirect method.

Question b:Evaluate the usefulness of Alderton Ltd's statement of cash flow, focusing on the incremental information provided over and above the balance sheet and income statement. Use specific examples from your calculations in Part (a) to support your response

Question c:Using all of the information available to you, briefly evaluate Alderton Ltd's financial performance for 2017.You are not required to calculate any ratios to answer this question.

7SSMM600 Assignment for Tutorial Participation Assessment The following information relates to Alderton Ltd: Statement of financial position as at 31 December 2017 and 2016: Non-current assets: Investments Property, plant and equipment (note i) Current assets: Inventory Receivables Bank Total Assets Current liabilities: Warranty provision (note ii) Trade payables Taxation payable Dividend payable (note iii) Interest payable Non-current liabilities: 12% loan Total liabilities Equity: Ordinary shares of 1 Revaluation reserve Retained profits Total equity Total liabilities and equity 2017 0005 1,500 35,000 36,500 13,600 1,100 100 14,300 51,300 8,000 3,650 600 10 1,400 13,660 20 1 6 0005 2,500 m 31,900 13,500 5,600 1,500 20,600 52,500 Statement of comprehensive income for the years ended 31 December 2017 and 2016: 2017 2016 0005 0005 Revenues 82,000 74,000 Cost of sales 54,500 49,600 Gross profit 27,500 24,400 Distribution costs 7,200 5,300 Sales and marketing costs 6,900 5,800 Administrative costs 8,400 8,200 Profit before interest and taxation 5,000 5,100 Interest expense 1,350 1,750 Profit before taxation 3,650 3,350 Taxation 1,100 1,000 Profit after taxation 2,550 2,350 Notes and additional information: (i) The company disposed of their freehold building during the year. The building had an original cost of 4,000,000, accumulated depreciation of 1,000,000 and triggered a gain on disposal of 50,000. Accumulated depreciation at the start of the year was 3,250,000 and the end of the year was 4,750,000. (ii) The company paid out 3,000,000 in warranty repairs during the year. These had previously been provided for, and were included in the liabilities at the end of 2016. (iii) Dividends approved and accrued for 2017 were 10,000 and for 2016 were 30,000. Required: (a) Prepare the statement of cash flows for Alderton Ltd for the year ended 31 December 2017, using the indirect method. (b) Evaluate the usefulness of Alderton Ltd's statement of cash flow, focusing on the incremental information provided over and above the balance sheet and income statement. Use specific examples from your calculations in Part (a) to support your response. (c) Using all of the information available to you, briefly evaluate Alderton Ltd's financial performance for 2017. You are not required to calculate any ratios to answer this