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 20 Accumulated Depreciation-Equipment 1 Accumulated Depreciation-Building 22 Accounts Payable 23 Income Tax Payable 24 Long term Notes Payable 25 Share Cepital Ordinary 26 Retained Earnings 27 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 prep 37 38 Required: To Prepare the Operating Activities section of the Statement of Cash Flows in good style. 39 55,000.00 100,000.00 10,000.00 65,000.00 70,000.00 0,000.00 45,000.00 82,000.00 8,000.00 60,000.00 80,000.00 40,000.00 300,000.00 300,000.00 40,000.00 730,000.00 655,000.00 Income from Operations Other income and Expenses Gain on sale of investments Loss on sale of equipment 10,000.00 000.00) 80,000.00 8,000.00 108,000.00 48,000.00 60,000.00 Less Income before taxes Net Income 12,000.00 10,000.00 30,000.00 75,000.00 10,000.00 70,000.00 440,000.00 350,000.00 98,000.00 730,000.00 655,000.00 14,000.00 15,000.00 33,000.00 70,000.00 12,000.00 60,000.00 86,000.00 ares its Statement of Cash Flows using the direct method