1 As the accountant for MM Group your duties include preparing the Statement of Cash 2 Flows from the information provided below MM Group Comparative Statements of Financial Position As at June 30 MM Group Comparative Statements of Financial Position As at June 30 2018 2017 Sales Revenue Less Cost of Goods sold Gross Profit Less Operating expenses (including bad debts and depreciation) 1,000,000.00 600,000.00 400,000.00 300,000.00 100,000.00 9 Cash 10 Accounts Receivable 11 Prepaid Expenses 12 Inventory 13 Equity Investments (non-trading) 14 Equipment 15 Building 16 Land 17 18 19 Allowance for Doubtful Accounts 0 Accumulated Depreciation-Equipment 1 Accumulated Depreciation-Building 22 Accounts Payable 23 Income Tax Payable 24 Long term Notes Payable 25 Share Capital Ordina 26 Retained Earnings 45,000.00 82,000.00 8,000.00 65,000.00 60,000.00 80,000.00 40,000.00 300,000.00 40,000.00 655,000.00 55,000.00 100,000.00 10,000.00 70,000.00 50,000.00 300,000.00 80,000.00 730,000.00 Income from Operations Other income and Expenses Gain on sale of investments Loss on sale of equipment 10,000.00 (2,000.00) 8,000.00 108,000.00 48,000.0O 60,000.00 Less Income before taxes Net Income 14,000.00 15,000.00 33,000.00 12,000.00 60,000.00 440,000.00 86,000.00 730,000.00 12,000.00 10,000.00 30,000.00 70,000.00 75,000.00 10,000.00 70,000.00 350,000.00 98,000.00 655,000.00 28 29 Additional data 30 1 . Equipment that cost 10,000 and was 50% depreciated at the time of disposal was sold for $3,000. 31 2. Ordinary shares were issued in exchange for land. 32 3. Equity investments which cost 30,000 were sold 33 4. Uncollectible accounts valued at $2,000 were written off during the year 34 5. Cash dividends were declared and paid during the year 35 36 The company prepares its Statement of Cash Flows using the direct method 37 38 Required: Cash paid for income tax 39