The statement of profit or loss of Sticky Stationery Supplies Ltd is presented here. 

Additional information:

1. Accounts receivable increased $510 000 during the year.

2. Prepaid expenses increased $170 000 during the year.

3. Accounts payable to inventory suppliers increased $50 000 during the year.

4. Accrued expenses payable decreased $180 000 during the year.

Required

(a) Prepare the operating activities section of the statement of cash flows for the year ended 30 June 2015, for Sticky Stationery Supplies Ltd, using the direct method.

(b) Prepare the operating activities section of the statement of cash flows for the year ended 30 June 2015 for Sticky Stationery Supplies Ltd, using the indirect method.  

Transcribed Image Text:

Sales Cost of sales Beginning inventory Purchases STICKY STATIONERY SUPPLIES LTD Statement of profit or loss for the year ended 30 June 2015 Goods available for sale Ending inventory Total cost of sales Gross profit Operating expenses Selling expenses Administrative expense Depreciation expense Amortisation expense Profit $1700 000 5430 000 7130 000 1920 000 400 000 525 000 75 000 30 000 $7100 000 5 210 000 1 890 000 1030 000 $ 860 000