The financial statements for the business of Jet’s Ski Equipment are shown below:

	JET’S SKI EQUIPMENT Comparative Statements of Financial Position as at 30 June
					2016				2017
	ASSETS Cash at bank Accounts receivable Inventory Store equipment Accumulated depreciation – store equipment Land Buildings Accumulated depreciation – buildings				— $  42 000 144 000 90 000 (27 000) 120 000 180 000    (9 000)				$  27 000 51 000 168 000 108 000 (45 000) 60 000 180 000 (15 000)
					$540 000				$534 000
	LIABILITIES AND EQUITY Accounts payable Bank overdraft J. Waters, Capital				$  72 000 30 000 438 000				$  78 000 — 456 000
					$540 000				$534 000

	JET’S SKI EQUIPMENT Income Statement for year ended 30 June 2017
	INCOME Sales revenue							$270 000
	EXPENSES Cost of sales Depreciation – store equipment Depreciation – buildings Other expenses Loss on sale of land Loss on sale of equipment					$144 000 21 000 6 000 60 000 12 000    9 000		252 000
	PROFIT							$   18 000

Additional information

(a) All purchases and sales of inventories are on credit.

(b) On 1 July 2016, J. Waters injected a further capital contribution of $21 000 cash into the business.

(c) During the year, store equipment costing $18 000 with a carrying amount of $15 000 was sold for $6000 cash.

(d) Half the land on hand at the beginning of the year was sold for $48 000 cash.

(e) During the year, the owner withdrew $6000 from the business bank account in order to pay his personal income tax bill and $300 per week for 50 weeks for private consumption.

Required

A. Prepare the statement of cash flows for Jet’s Ski Equipment for the year ended 30 June 2017, using the direct method.

B. Comment on the cash flow position as shown in the entity’s statement of cash flows.