Kim Khan has been in business as a sole trader for the past 5 years. The comparative statements of financial position for the years 2024 and 2025 and a summarised statement of financial performance for the year ended 30 June 2025 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 2025.

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Kim Khan Comparative statements of financial position as at 30 June 2024 Current assets Cash Accounts receivable Inventory 2025 $ 540 $ 4 290 3 150 6 000 Prepaid insurance Non-current assets Equipment 19 200 300 6 600 360 25 500 Accumulated depreciation - equipment (6 000) (7 500) Land 20 400 24 000 Motor vehicles 14 550 15 600 (5 490) (6 300) Accumulated depreciation-motor vehicles Total assets Current liabilities Bank overdraft Accounts payable Non-current liabilities Long-term mortgage Total liabilities Net assets Equity Kim Khan, capital Total equity 53 250 61 950 300 6 150 7 950 14 100 20 550 18 900 26 850 $ 32 700 $ 35 100 32 700 $ 32 700 35 100 $ 35 100