QUESTION 2. Prepare a Cash Flow Statement for Century Office Ltd as on 31st December 2020 from the following information: (20 marks)

Statement of Financial Position

Liabilities	1/12/2020 (P)	31/12/2020 (P)	Assets	1/12/2020 (P)	31/12/2020 (P)
Share Capital 8% Debentures Retained Earnings Creditors Accounts Payable Provision for Tax	1,00,000 - 60,000 40,000 20,000 30,000	4,00,000 2,00,000 90,000 1,00,000 40,000 40,000	Goodwill Machinery Stock Debtors Cash at Bank Cash in Hand	- 1,25,000 20,0000 30,000 50,000 25,000	20,000 4,75,000 80,000 1,00,000 1,50,000 45,000
	2,50,000	8,70,000		2,50,000	8,70,000

Additional Information:

a. During 2020, the business of a sole trader was purchased by issuing shares for P. 2, 00,000. The assets acquired from him were: Goodwill P 20,000, Machinery P. 1, 00,000, Stock. P 50,000 and Debtors P 30,000.

b. Provision for tax charged in 2020 was P. 35,000.

c. The debentures were issued at a premium of 5% which is included in the retained earnings.

d. Depreciation charged on machinery was P. 30,000.