The statement of financial position of Cairo at 30 June 2011 is as follows: Noncurrent assets £ Buildings 28,000 Current assets 12,400 Inventory 40,400 Equity Owner equity 40,400 During the reporting period ended 30 September 2011, the following events occurred: Transaction 1: Sold the entire inventory for £16,500 cash. The cash receipt was immediately lodged to the business bank account. Transaction 2: The owner of Cairo invested new equity amounting to £3,000. The amount was lodged to the business bank account. Transaction 3: Purchased inventory on credit for £7,000. The inventory was still on hand and liability still outstanding at 30 September. Transaction 4: The buildings were revalued to £50,000 on 30 September. Transaction 5: Received and paid an insurance invoice amounting to £800. Required: Prepare Cairo's statement of comprehensive income (as a single statement) for the three-month period ended 30 September 2011 and the statement of financial position at that date. [25 Marks]Question Two: The financial statements of Aqua are as follows: Statement of comprehensive income for the year ended 30 September 2010 £000 Revenue 2,777 Cost of sales (1,785) Gross profit 992 Administrative expenses (221) Distribution costs (610) Profit from operations 161 Income from investments 4 Finance costs (21) Profit before tax 144 Income tax (22) Profit for the period 122 Other comprehensive income: Gain on property revaluation 60 Total comprehensive income 182 Statement of financial position as at 30 September 2012 2010 2009 £000 £000 Noncurrent assets 688 510 Current assets Inventory 420 464 Trade receivables 290 333 Interest receivable 4 12 Investments 50 Cash in hand and at bank 82 4 864 813 TOTAL ASSETS 1,534 1,323 Equity and liabilities £1 ordinary shares 360 300 Share premium 92 92 Revaluation reserve 60 Retained earnings 7 (85) 519 307 Noncurrent liabilities 10% loan notes 50 5% loan notes 329 349 329 399 Current liabilities Banks overdraft 75 Trade payables 550 421 Income tax 100 88 Accruals 36 33 686 617 TOTAL EQUITY AND LIABILITIES 1,534 1,323Additional information: 1. On 1 October 2009, Aqua issued 60,000 £1 ordinary shares at par. The proceeds were used to finance the purchase and cancellation of all its 10% loan notes and some of its 5% loan notes, both at par. 2. The current asset investment is a 30-day government bond. 3. Noncurrent tangible assets include certain properties which were revalued in the year. 4. Noncurrent tangible assets disposed of in the year had a carrying value of £75,000. Cash received on disposal amounted to £98,000. 5. Depreciation charged for the year was £87,000. 6. The accruals balance includes interest payable of £33,000 at 30 September 2009 and £6,000 at 30 September 2010. 7. Interim dividends paid during the year amounted to £30,000. Required: (i) Prepare a statement of cash flows using the indirect method for the year ended 30 September 2010. [25 Marks] (ii) Prepare a statement of cash flows using the direct method for the year ended 30 September 2010. [25 Marks] (iii) Provide an analysis of cash and cash equivalents at 30 September 2010. [25 Marks].Guidelines Please read all questions and information provided carefully. Answer should