(a) Calculate the amount of Cash paid to suppliers and employees as would be disclosed in the 2020 Statement of Cash Flows under the direct method. Perform the calculations using T accounts, where possible, and show full working.

(b) Present the sub-section Changes in assets and liabilities as would be disclosed in the 2020 Statement of Cash Flows under the indirect method. Clearly indicate whether each amount is added or subtracted from profit for the period

The following financial information is available for Bunny Ltd. All sales and purchases of inventory are on credit. Other expenses include $48 000 depreciation expense. Bunny Ltd Comparative Statements of Financial Position as at 30 June 2019 2020 Assets Cash at bank $ 31 000 $ 45 000 Accounts receivable 78 000 69 000 Inventory 120 000 180 000 Property, Plant and Equipment (PPE) 182 000 172 000 Accumulated depreciation PPE (12 000) (10 000) Total Assets 399 000 456 000 Liabilities Accounts payable 73 000 71 000 Other accrued expenses current 24 000 19 000 Total Liabilities 97 000 90 000 Net Assets 302 000 366 000 Equity Share capital 200 000 200 000 Retained earnings 102 000 166 000 Total Equity $ 302 000 $ 366 000 Bunny Ltd Income Statement For the year ended 30 June 2020 Sales Cost of sales GROSS PROFIT Other income: Gain on sale of property $ 950 000 ( 630 000) 320 000 40 000 360 000 Expenses: Loss on sale of plant Other expenses PROFIT (8 000) (188 000) $ 164 000