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The data below are taken from the financial statements of FAST Company: Income Statement: 2019 Profit Depreciation expense Amortization expense of trademark Gain/Loss on sale of machine $25,300 15,800 8,800 ??? Statement of Financial Position: 31 March 2019 31 March 2018 Cash Accounts receivable Inventory Prepaid expenses Accounts payable Accrued expense payable $112,900 119,500 353,000 38,900 217,900 27,000 $105,300 1 37,200 219,400 51,000 185,600 37,800 Additional Information: (1) Borrowed a long term loan of $300,000 from HKCC Bank. (2) Paid cash dividend of $0.3 per share for the total 200,000 ordinary shares issued and outstanding (3) Made a loan of $20,000 to Company's director. (4) Sold the old machine at cash of $87,000 (the cost of the machine is $155,500 and the accumulated depreciation at the date of disposal is $65,500). (5) Purchased a new machine for cash at $270,000 Required: (a) Prepare the statement of cash flows for the year ended 31 March 2019 for FAST Company using the indirect method. Place parentheses around those dollar amounts representing cash outlays. (12 marks) (b) Briefly state the purposes of a statement of cash flows. (1 mark) (e) Does a statement of cash flows or an income statement best measure the profitability of a financially sound business? Explain. (2 marks)

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