Question $4(30$ Marks$)$Fabz Limited is a fast growing company that manufactures toys and baby accessories. You havebeen employed by Fabz Limited for more than four years, assisting them in the preparation ofthe financial statements, and due to your exceptional expertise. your assistance is needed in thepreparation of the statement of cashflows for the year ended $28$ February $2023.$The following was taken from the records of Fabz Limi ted:FARZ LMITEDSTATEMENT OF FINANCIAL POSITION AS AT $28$ FEBRUARY $2023$ASSETSNon$-$current assetsald and buldings at costAccumulated depreciation: VehiclesEquipment at costAccurmulated depreciation: EquipmentCurrent assetsnventoryncome aCcruedPrepakd expensesCash and cash equivalentsTOTALAEQUITY AND LIABILITIESEquity$|$Non$-$c$1-$current liabilitiesd earningsCurrent liabilitiescreditorsAccrued expensesSalesAccruedinterestARILITHESTOTAL EQUITY AND Ltion of long$-$term loan$100$ Interest$-$bearing l Playful Financial Services $13$nrofit$|$Other incoRent income$1$come$4$Operating expensesDepreciationof equipmentFinance costsProfit before taxAdditional information:$|2023(30000)$vear$\mathrm{.}442500(30000150275014250$foREQUIRED:$82500290000$Page $11$ of $179452505.$ Vacant land was sold during the year for cash$\mathrm{.}8000$Comparatilve figures are not requredShow all your calculations!!$419250315150900031815$STATEMENT OF PROFIT OR LOSS AND OTHERCOMPREHENSIVE INCOMEFOR THE YEAR ENDED $28$ FEBRUARY $2023207850$l the$15000019350945250|462750$T$2250|82500$T$(15000)$FACULTY OF COMMERCE, MANAGEMENT AND LAWOLD CURRICULUM MODULES$24150012750600006007042|4600$n$|129850129850|113000375070425020231.$ Fabz limited obtained an addiional $10\%$ loan from Playful Financial services on $01$T$600000$instalments of NS$150000$ each on $28$ Fehrua of erces repayatble in$2.$ Included in share capital is $60100$ redeemable preference shares with a par value ofN$$1\mathrm{.}50$ per share. These shares were redeemed at par on $30$ October $2022\mathrm{.}304003.$ Equipment with a cost price of N$$15000$ and accumulated depreciation of N$$3000$ wasreptace he equipment sold.Vehees:a ew equipment was purc$1440015000$T$91750)(52000)(750$ A new vehicle for use in the business was purchased during the year at a cost ofN$$127400\mathrm{.}88650(40650480006.$ Assume that finance costs for the year have been calculated correctly.to N$$34000.$nden amunt of Ns$3650$ was sold during theCarryin$9$ atou$1.$ Prepare the statement of cash flows of Fabz Limited in compliance with lAS$7$ Statement$(282.$ Prepare the note for the "reconciliation of profit before tax with the cash generated fromoperations", that would be included in the Notes to the financial statements of Fabzlimited for the year ended $28$ February $2023.$ Comparative figures are not required. $(6$marks$)$mg the direct method.