1) Prepare a cash flow statement for Simmons Ltd for the year ended 31 December 2022 using the direct method.

(a) All sales and purchases were on account.

(b) Accounts payable pertains to inventory creditors.

(c) A cash dividend had been paid to shareholders during the year.

(d) Additional plant costing $127,500 was purchased for a cash during the year. The old

plant was sold for cash.

(e) Notes with a face value of $45,000 were converted into $45,000 of ordinary shares.

(f) Additional shares were also issued for cash during the year.

(g) Income tax and interest were settled in cash.

Simmons Ltd