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4) A summarised comparative statement of financial position of Gilbert Ltd is presented below, together with the statement of profit or loss for the year

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4) A summarised comparative statement of financial position of Gilbert Ltd is presented below, together with the statement of profit or loss for the year ended 30 June 2019. Gilbert Ltd Statements of Financial Position (extract) Jas at 30 June 2019 2019 2018 $ S Cash 73 000 60 000 Trade receivables 90 000 80 000 Allowance for doubtful debts (6 000) (3 000) Inventory 50 000 45 000 Available for sale investments 24 000 17 000 Plant 110 000 106 000 Accumulated depreciation (53 000) (35 000) Total Assets 288 000 270 000 Accounts payable Interest payable Borrowings 45 000 65 000 3 000 5 000 80 000 50 000 Share capital Reserves Retained earnings Total liabilities and equity 100 000 100 000 10 000 5 000 50 000 45 000 288 000 270 000 Gilbert Ltd Statement of Profit or Loss (extract) for the year ended 30 June 2019 Sales (all on credit) 120 000 Cost of sales (44 000) Gross profit 76 000 Doubtful debt expenses (5000) Wages (6 000) Employee entitlements (4 000) Depreciation expense (48 000) Interest expense (7000) 1. Plant extensions were paid for during the year ended 30 June 2019. 2. Plant with a carrying value of $nil (cost of $30 000; accumulated depreciation of $30 000) is scrapped. 3. Available-for-sale investments are measured at fair value, with increases/decreases being recognised in other comprehensive income, and accumulated in the investment revaluation reserve until investments are sold. 4. Income tax of $3 000 was paid in cash during the year ended 30 June 2019. 5. Wages and employee entitlements expenses were paid in cash. 6. No cash dividends were paid during the year ended 30 June 2019. REQUIRED Prepare a cash flow statement for Gilbert Ltd for the year ending 30 June 2019 using the direct method. Notes are not required. Show all workings as marks are awarded for workings. (14 marks)

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