Kim Khan has been in business as a sole trader for the past 5 years. The comparative statements of financial position for the years 2019 and 2020 and a summarized income statement for the year ended 30 June 2020 are shown below.

Additional information 1. Kim had contributed capital during the year for $6000 cash and had made cash withdrawals during the year. The bank overdraft was considered to be part of the entity’s everyday cash management activities.
Required

(a) Prepare a statement of cash flows using the direct method for Kim Khan’s business for the year ended 30 June 2020.

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CURRENT ASSETS Cash Accounts receivable Inventory Prepaid insurance NON-CURRENT ASSETS Kim Khan Comparative Statements of Financial Position as at 30 June 2019 2020 540 $ 4290 6000 300 3150 6600 360 Equipment 19 200 25 500 Accumulated depreciation - equipment (6 000) (7 500) Land 20 400 24 000 Motor vehicles 14 550 15 600 Accumulated depreciation - motor vehicles (5 490) (6 300) TOTAL ASSETS 53 250 61 950 CURRENT LIABILITIES Bank overdraft Accounts payable 300 6150 7950 NON-CURRENT LIABILITIES Long-term mortgage TOTAL LIABILITIES 14100 18900 20 550 26 850 $32 700 $35 100 NET ASSETS EQUITY Kim Khan, Capital 32 700 TOTAL EQUITY $32 700 35 100 $35 100