Preparation of a statement of cash flows   LO3, 4, 5 A summarised comparative statement of financial position of Bronze Ltd is presented below, together with a statement of profit or loss and other comprehensive income for the year ended 30 June 2019. 30 June 2018 30 June 2019 Cash $ 45 000 $ 35 000 Trade receivables 69 000 105 000 Allowance for doubtful debts (3 000) (6 000) Inventories 45 000 67 000 Equity investments 53 000 60 000 Plant 187 000 225 000 Accumulated depreciation (35 000) (53 000) $361 000 $433 000 Accounts payable $ 65 000 $ 75 000 Accrued interest 5 000 7 000 Current tax payable 15 000 18 000 Deferred tax 30 000 37 000 Borrowings 80 000 100 000 Share capital 100 000 100 000 Investment revaluation reserve 2 000 7 000 Retained earnings 64 000 89 000 $361 000 $433 000 BRONZE LTD Statement of profit or loss and other comprehensive income for the year ended 30 June 2019 Sales Cost of sales $1 035 000 (774 000) Gross profit 261 000 Distribution costs (76 000) Administration costs (96 000) Interest expense (7 000) Profit before tax 82 000 Income tax expense (24 000) Profit for the year 58 000 Other comprehensive income Gain on revaluation of investments (net of tax) 5 000 Total comprehensive income $ 63 000 Additional information • The movement in the allowance for doubtful debts for the year comprises the following. Balance at 30 June 2018 $ 3 000 Charge for year 5 000 Bad debts written off (2 000) Balance at 30 June 2019 $ 6 000 • Equity investments are shares in other companies that are measured at fair value, with increases/ decreases being recognised in other comprehensive income, and accumulated in the investment revaluation reserve until investments are sold. • There were no disposals of plant during the year. • A dividend of $33 000 was paid during the year. • There were no acquisitions or disposals of investments during the year. Required 1. Using the direct method of presenting cash flows from operating activities, prepare a statement of cash flows in accordance with AASB 107/IAS 7 for the year ended 30 June 2019. 2. Prepare the operating activities section of the statement of cash flows using the indirect method of presentation.