Income statement for year ended 30 June 2020 E Operating profit 2,799,360 Finance costs (interest expense) (180,220) Profit before tax 2,619,140 Income tax (628,290) Profit for the year 1,990,850 Additional Notes: 1. The company made significant additions to plant, property and equipment during the year. 2. During the year, non-current assets with a net book value of E355,600 were sold for $382,020. The gain on disposal was included in operating profit. 3. Depreciation charged for the current year was E698, 700. 4. During the year, Fave made an issue of ordinary shares for cash; the shares were issued at a premium. 5. During the year, Fave Lid made an issue of debentures. 6. The treasury bills and bonds are highly liquid and are treated as cash equivalents in the company. 7. The company does not accrue any interest expense. 8. Tax paid in the current year was $614, 610. 9. Fave Lid declared and paid dividends of $1,232,750 during the year. Required: Prepare the statement of cash flows for Fave Lid for the year ended 2020 in accordance with the IAS 7 prescribed format.4. The following are extracts from the financial statements of Fave Ltd: Statement of financial position at 30 June 2020 2019 ASSETS E E Non-current assets Land 950,000 950,000 Property, plant and equipment 3,937,920 2,803,200 Current assets Inventories 1,283,760 856,650 Trade receivables and other receivables 1,028, 100 672,450 Treasury bills and bonds 190,000 130,000 Cash and cash equivalents 242,410 111,400 Total assets 7,632, 190 5,523,700 EQUITY AND LIABILITIES Equity share capital ($1 shares) 1,262,200 898,400 Share premium 1,294,600 1,053,000 Retained earnings 1,604,400 846,300 Non-current liabilities Debentures (10%) 1,802,200 1,369,000 Current Ilabilities Tax payable 628,290 614,610 Trade and other payables 1,040,500 742,390 Total equity and liabilities 7,632,190 5,523,700