39.5A You are required to draw up a statement of cash flows for K. Rock for the year ending 30 June 2017 from the following information using the IAS 7 layout. K. Rock Statement of Profit or Loss for the year ending 30 June 2017 Gross profit Add Reduction in allowance for doubtful debts Less Expenses: Wages and salaries General trading expenses Equipment running costs Motor vehicle expenses Depreciation: Motor vehicles Equipment Loss on sale of equipment Net profit Statements of Financial Position as at 30 June 155,030 200 155,230 61,400 15,200 8,140 6,390 5,200 6,300 1,600 (104,230) 51,000 2016 2017 Non-current assets Equipment at cost 40,400 30,800 Less Depreciation to date (24,600) (20,600) 15,800 10,200 Motor vehicles at cost 28,300 28,300 Less Depreciation to date (9,200) (14,400) 19,100 13,900 34,900 24,100 Current assets Inventory 41,700 44,600 Accounts receivable less allowance* 21,200 19,800 Bank 12,600 28,100 75,500 92,500 Total assets 110,400 116,600 Current liabilities Accounts payable 14,300 17,500 Non-current liability Loan from T Pine 20,000 10,000 Total liabilities (34,300) (27,500) Net assets 76,100 89,100 Capital Opening balance 65,600 76,100 Add Net profit Less Drawings 42,500 51,000 108,100 127,100 (32,000) (38,000) 76,100 89,100 Total capital *Accounts receivable 2012 22,100 allowance 900. Accounts receivable 2013 20,500 - allowance 700. Note: Equipment was sold for 15,800. Equipment costing 18,100 was purchased during the year