Section B Answer ALL questions. This section carries 40 marks. Question B1 Summarised financial statements for Revere Ltd for 2019 and 2020 are provided below: Revere Ltd: Statements of Financial Position as at 31st December 2020 Em 2019 Em 452 405 Assets Non-current assets Property, plant equipment Current assets Inventories Trade receivables Short term investments Cash 170 110 85 40 145 85 60 Total Assets 857 695 180 Equity and Liabilities Equity Share capital (1.00 shares) Share premium Revaluation surplus Retained earnings 320 70 90 135 615 140 95 415 Non-current liabilities 15% Loan note Current liabilities 150 92 170 110 Total Equity and Liabilities 857 695 Revere Ltd: Statement of Profit or Loss y/e 31-12-20 Revenue Cost of sales Gross profit Distribution costs Administration expenses Finance income Finance costs Profit before tax Tax Profit after tax Dividends paid in period m 630 (325) 305 (70) (40) 15 (30) 180 (50) 130 90 Additional information: 1) During 2020 Revere disposed of plant at a book loss of 8m. The plant had originally cost 25m but at time of disposal its net book value was 15m. 2) The short-term investments can be regarded as cash equivalents. 3) Current liabilities in SOFP consist of: 2020 2019 Em m Trade payables 50 52 Interest payable Tax payable 27 Bank overdraft 25 92 110 15 18 15 4) During 2020 20m of 15% loan note was converted to 20m of 1.00 ordinary shares. 5) The depreciation charge for 2020, included in the statement of profit or loss, was 51m. Required: (a) Prepare a statement of cash flows [indirect method] for Revere Ltd for year [16] ended 31st December 2020, in line with the requirements of IAS7