Opposite are the comparative statements of financial position of Foxbell Ltd as at 30 June 2024 and 2025, and the statement of financial performance and statement of changes in equity for the year ended 30 June 2025.

Additional information 1. Other expenses include \($99\) 000 depreciation expense on machinery and insurance expense of \($15\) 750.

2. All sales and purchases are on credit.

3. Rental income is earned as a result of renting part of the property that is in excess of the company’s needs.

Required

(a) Prepare the cash flows from operating activities only for Foxbell Ltd for the year ended 30 June 2025, using the direct method. Ignore taxes.

Transcribed Image Text:

Assets Cash at bank Accounts receivable Inventory Prepaid insurance Property Machinery FOXBELL LTD Comparative statements of financial position as at 30 June Accumulated depreciation - machinery Liabilities and equity Accounts payable Interest payable Other accrued expenses Mortgage payable Share capital Retained earnings 2024 2025 $ 29250 168 750 297 000 15750 201 600 1 350 000 $ 103500 150750 369 000 11250 180000 1620000 (301 500) $1760 850 $ 99 000 15 300 (364 500) $2070 000 $ 112500 13500 31 500 652000 20250 540 000 450 000 765000 636 300 495000 $1760 850 $2070000