QUESTION $2(29$ marks$)$ Baker Ltd is a company with a $31$ March financial year$-$end. Baker Ltd invests in various types of assets, such as property, share investments, etc., in order to diversify their business. The following trial balances of Baker Ltd were made available: Notes $31$ March $2025$ Dr $/($Cr$)$ Rand $31$ March $2024$ Dr $/($Cr$)$ Rand Ordinary share capital $(1500000)(1500000)$ Preference share capital $(2500000)(2250000)$ Retained earnings $(202300)(78900)$ Revaluation surplus $1(200000)-$ Land at cost $120900002100000$ Vehicles at carrying amount $217105001688000$ Equipment at carrying amount $31010000980000$ Fixed deposit $4250000-$ Share investment $5450000-$ Trade receivables $137200158000$ Inventory $297000243000$ Long$-$term borrowings $(500000)(700000)$ Trade payables $(200800)(197000)$ Bank overdraft $(817100)(177100)$ Current tax payable $(24500)(11000)$ Dividends payable $6-(255000)--$ ANNEXURE I: FORMATIVE ASSESSMENT $297$ HFAC$231-1-$Jan$-$Jun$2025-$FA$2-$CP$-$V$3-10122024$ The following items were included in Baker Ltd$$s Statement of Profit or Loss and Other Comprehensive Income for the financial year ended $31$ March $2025$: Notes Rand Profit on sale of land $1370000$ Loss on scrapping of vehicle $260000$ Depreciation $$ vehicles $2172000$ Depreciation $$ equipment $372000$ Interest expense $85000$ Income tax expense $48000$ Notes: $1.$ During the $2024$ financial year, Baker Ltd purchased a piece of vacant land for business expansion purposes. They have since decided not to proceed with the planned business expansion and have therefore sold the piece of vacant land during the $2025$ financial year. The remainder of the land was revalued for the first time on $31$ March $2025.$ The land is not depreciated. $2.$ One of Baker Ltd$$s vehicles was involved in an accident. Baker Ltd was not able to get the vehicle repaired; therefore, it had to be scrapped. The vehicle had a carrying amount of R$605500$ on the date it was scrapped. Baker Ltd received a cash payout from their insurance broker for the scrapped vehicle. Baker Ltd purchased a new vehicle to replace the one that had to be scrapped, which was paid for in cash. No other vehicles were bought or sold during the $2025$ financial year. $3.$ No equipment was sold during the $2025$ financial year. $4.$ On $31$ March $2025,$ Baker Ltd deposited R$250000$ into a fixed deposit account. In terms of the fixed deposit account requirements, the R$250000$ is invested for a period of $5$ years and can only be withdrawn at the end of the $5-$year investment period. $5.$ Barker Ltd$$s board of directors made a decision to invest in shares for trading purposes in an effort to expand their business. The shares are, therefore, held at fair value through profit or loss. The shares were bought on $31$ March $2025.$ Therefore, no fair value adjustment was required for the $2025$ financial year. $6.$ No dividend was declared for the $2025$ financial year. ANNEXURE I: FORMATIVE ASSESSMENT $298$ HFAC$231-1-$Jan$-$Jun$2025-$FA$2-$CP$-$V$3-10122024$ REQUIRED: Prepare Baker Ltd$$s Statement of Cash Flows for the year ended $31$ March $2025$ using the indirect method in accordance with IAS $7$: Statement of Cash Flows. Show all workings clearly and reference accordingly. Comparative figures are not required. $(28$ marks$)$ Communication skill: Presentation $(1$ mark$)$