Below are the comparative statements of financial position of Lithium Ltd.

Additional information 1. Income statement details were: sales revenue $750 000; cost of sales $603 000; expenses $116 360 (excludes depreciation and carrying amount of vehicle sold); bad debts expense $14 440; and tax expense $4200.
2. A dividend was paid during the year.
3. A vehicle that cost $5600 originally was sold during the year for $3000. The vehicle had been depreciated by $3200 at date of sale.
4. The company pays tax in one instalment. The single instalment of $3200 due by 21 October 2020 was paid.
Required

(a) Prepare a statement of cash flows for the year ended 30 June 2021 in accordance with the direct method. Include any appropriate notes.

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ASSETS LITHIUM LTD Comparative Statements of Financial Position as at 30 June 2020 2021 Petty cash $ 200 Cash at bank 24 200 Bank bills 10 000 Accounts receivable $102 960 Allowance for doubtful debts (6960) 96 000 Inventory 74 600 $127 400 (11 400) $ 400 30 600 12 000 116000 70 800 Motor vehicles 42 000 50 400 Acc. depr. motor vehicles (10000) 32 000 (12 800) 37 600 Office furniture 16000 18400 Acc. depr. off. furn. (7 600) 8400 $245 400 (8 400) $277 400 10 000