QUESTION TWO-15 MARKS: Set out below are the condensed balance sheets for Walkley Lid for 20X0 and 20X1, and and income statement for the year ended 31 December 20X1. Balance Sheets 20x0 20X1 K000 Ordinary share capital (KI share) 940 Revenue reserves Share premium account Loans Trade creditors Proposed dividends Current taxation Bank overdraft 3.733 Plant and machinery Cost 2,700 Accumulated depreciation 748 3,831 1.125 2,706 1.952 Inventory 203 Debtors Cash at bank 51_ 2353 Income statement for the year ended 31 December 20X1 K000 K000 Income before tax 1,195 Corporation tax Income after tax Ordinary dividends Paid 90 Proposed 170 260 Notes: 1. The only new loan raised during the year was a five-year bank loan amounting to K65,000 2. Depreciation charged during the year amounted to K401,000 3. During the year,plant which originally cost 69,000 was disposed of for proceeds of K41,000. 4. During the year, the company offered 200,000 shares by way of rights to existing shareholders. Required: Prepare a statement of cash flows for 20X1 in accordance with FSB I statement of cash flows. 15 Marks