The simplified financial statements of SPS Ltd appear below.

Additional information 1. Dividends declared and paid were \($26\) 400.
2. During the year equipment was sold for \($10\) 200 cash. The equipment cost \($21\) 600 and had a carrying amount of \($10\) 200 at the time of sale.
3. Depreciation expense is included as a selling expense in the statement of financial performance.
4. All sales and purchases are on credit.
Required

(a) Prepare a statement of cash flows using the indirect method.

(b) Prepare a statement of cash flows using the direct method.

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SPS LTD Statement of financial position as at 30 June Assets Cash Accounts receivable Inventory Plant and equipment Accumulated depreciation plant and equipment Liabilities and equity Accounts payable Current tax liability Loan payable Share capital Retained earnings Sales Cost of sales Gross profit Selling expenses Administrative expenses Interest expense Profit before tax Income tax expense Profit SPS LTD Statement of financial performance for the year ended 30 June 2025 2024 $ 37200 33 600 30 000 2025 $ 15600 16800 42 000 93 600 72 000 (26400) $146 400 $ 32 400 (28 800) $139 200 $ 27600 6000 9 600 32 400 37 200 41 600 41 600 34 000 $146 400 23 200 $139 200 $264.000 216000 48 000 $16800 9 600 1200 27 600 20 400 4 800 $ 15600