1. 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) as at 30 June 2019

   			2019		2018
   			$		$
   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			45 000		65 000
   Interest payable			3 000		5 000
   Borrowings			80 000		50 000
   Share capital			100 000		100 000
   Reserves			10 000		5 000
   Retained earnings			50 000		45 000
   Total liabilities and equity			288 000		270 000
   	Gilbert Ltd Statement of Profit or Loss (extract) for the year ended 30 June 2019
   	Sales (all on credit) Cost of sales Gross profit Doubtful debt expenses Wages Employee entitlements Depreciation expense Interest expense			120 000 (44 000) 76 000 (5 000) (6 000) (4 000) (48 000) (7 000)

   Additional information

   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)