A summarised comparative statement of financial position of Tree Ltd is presented below, together with the statement of financial performance for the year ended 30 June 2020.

Brothers Ltd Statements of Financial Position (extract) as at 30 June 2020

			2020		2019
			$		$
Cash			90 000		10 000
Account receivables			95 000		85 000
Allowance for doubtful debts			(11 000)		(8 000)
Inventory			55 000		50 000
Available for sale investments			24 000		17 000
Machinery			210 000		206 000
Accumulated depreciation			(158 000)		(140 000)
Total Assets			293 000		280 000
Trade payable			50 000		70 000
Interest payable			3 000		5 000
Loan			80 000		50 000
Share capital			100 000		100 000
General Reserves			27 000		15 000
Retained earnings			45 000		40 000
Total liabilities and equity			293 000		280 000
	BrothersLtd Statement of Financial Performance (extract) for the year ended 30 June 2020
	Sales Revenue (all on credit) Cost of sales Gross profit Doubtful debt expenses Employee Salaries Employee Wages Depreciation expense Interest expense			200 000 (124 000) 76 000 (5 000) (2 000) (8 000) (38 000) (17 000)

Additional information

1. Plant with a carrying value of $5,000 (cost of $30,000; accumulated depreciation of $25,000) is scrapped.
2. Brothers Ltd received $5,000 discount during the year for making an early payment to supplier.
3. Income tax of $3,000 was paid in cash during the year ended 30 June 2020.
4. Wages and employee entitlements expenses were paid in cash.
5. Cyclone destroyed some of the inventories of Brothers Ltd. Hence, Brothers ltd has written-off 20% of its inventory during the year.

REQUIRED

Prepare a Cash Flow from Operating Activities of Brothers Ltd for the year ending 30 June 2020 using the direct method.

(Show workings)