The following information is obtained from the books of Solar Incorporated, a company, on 31 December 2011: Solar Ltd Abridged statement of profit or loss and other comprehensive income for the year ended 31 December 2011 NS Gross profit 60 000 Add: other income 8 250 Interest on fix deposits 3000 Profit on sale of assets (vehicle) 1000 Dividend on listed stocks 4250 (20 600) Less operating expenses: Bank charges Interest on bond Credit losses Depreciation Other operating expenses Profit for the year 3 500 7 500 800 8 500 300 47 650 Solar Ltd Statement of financial position as at 31 December 2011 N$ 2011 2010 ASSETS Non-current assets Property, plant and equipment Listed shares at cost price Fixed deposit 153 500 17 000 13 000 130 000 15 000 5 000 Current assets Inventory Debtors (net after allowing for credit losses) Cash and cash equivalent TOTAL ASSETS 40 000 25 000 500 249 000 20 000 35 000 2000 207000 EQUITY AND LIABILITIES Equity Ordinary share capital (N$ 1 shares) Retained earnings 75 000 72 650 75 000 25 000 Non-current liabilities Mortgage loan 48 000 62 000 Current liabilities Creditors Bank overdraft TOTAL EQUITY AND LIABILITIES 45 000 47 350 6 000 249 000 207 000 Additional information: 1

The following information is obtained from the books of Solar Incorporated, a company, on 31 December 2011: Solar Ltd Abridged statement of profit or loss and other comprehensive income for the year ended 31 December 2011 NS Gross profit 60 000 Add: other income 8 250 Interest on fix deposits 3000 Profit on sale of assets (vehicle) 1000 Dividend on listed stocks 4250 (20 600) Less operating expenses: Bank charges Interest on bond Credit losses Depreciation Other operating expenses Profit for the year 3 500 7 500 800 8 500 300 47 650 Solar Ltd Statement of financial position as at 31 December 2011 N$ 2011 2010 ASSETS Non-current assets Property, plant and equipment Listed shares at cost price Fixed deposit 153 500 17 000 13 000 130 000 15 000 5 000 Current assets Inventory Debtors (net after allowing for credit losses) Cash and cash equivalent TOTAL ASSETS 40 000 25 000 500 249 000 20 000 35 000 2000 207000 EQUITY AND LIABILITIES Equity Ordinary share capital (N$ 1 shares) Retained earnings 75 000 72 650 75 000 25 000 Non-current liabilities Mortgage loan 48 000 62 000 Current liabilities Creditors Bank overdraft TOTAL EQUITY AND LIABILITIES 45 000 47 350 6 000 249 000 207 000 Additional information: 1. Property, plant and equipment Cost price Carrying amount Accumulated depreciation 2011 2010 2011 120 000 2010 100 000 2011 120 000 2010 100 000 Land and buildings Vehicles Equipment 32 000 25 000 177.000 30 000 21 000 151 000 12 500 11 000 23 500 13 000 8 000 21 000 19 500 14 000 153.500 17 000 13 000 130 000 . The vehicle that was sold had a cost price of N$ 12 000 and accumulated depreciation of N$ 6 000 when it was sold on 01 January 2011 for N$ 7 000, 2. The listed investment comprised 6 500 ordinary shares of N$ 2 each in ABC itd; the market value is N$ 23 000. 3. The allowance for credit losses for 2011 is calculated at 5% of outstanding debtors after the allowance is taken into consideration. The allowance for 2010 was 2.5% of outstanding debtors after the allowance was taken into consideration 4. The gross profit percentage is 25%. REQUIRED: 1. Prepare the statement of cash flow for the company, using the direct method, for the year ended 31 December 2011. This statement must in all aspects comply with the requirements of IAS 7 (IFRS) and Companies Act (20 marks)