ARUN MUSIC COMPANY Balance Sheet, October 31

| 20X5 | 20X4 ------------------------------------------ Assets: | | Non-current | | assets: | | Property, | | plant, and | | equipment, at | 89,500 | 68,600 cost: | | Less: | (41,900) | (37,600) Accumulated | | depreciation: | | Property, | 47,600 | 31,000 plant, and | | equipment, | | net: | | Non-current | 5,500 | 14,600 investments: | | Current | | assets: | | Inventories: | 21,300 | 16,400 Financial | | assets: | | Trade | 9,800 | 4,300 receivables | | (net of | | allowance for | | credit losses | | 2,900; 1,800):| | Cash and | 1,200 | 3,800 cash | | equivalents: | | Other current| 2,400 | 1,500 assets: | | Prepaid | | expenses: | | Total assets: | 87,800 | 71,600 | |

Equity and | 20X5 | 20X4 Liabilities: | | ------------------------------------------ Equity: | | Equity share | 49,000 | 41,000 capital: | | Other equity: | 12,600 | 9,700

Liabilities: | | Non-current | | liabilities: | | Financial | | liabilities: | | Borrowings: | 9,500 | 14,200 Bills payable | | 0 Current | | liabilities: | | Financial | | liabilities: | | Trade | 5,500 | 4,800 payables: | | Current tax | 10,300 | 1,900 liabilities: | | Total equity | 87,800 | 71,600 and | | liabilities: | |

ARUN MUSIC COMPANY Statement of Profit and Loss For the year ended October 31, 20X5

Sales: $92,700 Dividend Income: $1,800 Interest Income: $1,200 Gain on Sale of Plant: $2,300 Total Income: $98,000

Expenses: Cost of Goods Sold: $75,100 Finance Costs: $2,200 Selling and Administrative Expenses: $14,500 Loss on Sale of Investments: $1,400

Profit Before Tax: $4,800 Tax Expense: $1,900

Profit for the Period: $2,900

Additiozal information: 1. Propery, Plant and equipment include land 7 500 in 20X5 and 20XA. Land is not depreciated 2 Purchased machinery for cash, 19,900. 3. Sold a plarnt, 5,000 (cost, 4,500; accumulated depreciation, ,1800) 4. Purchased machinery on long-term credit, 5,500. 5. Purchased investments, 1,900. 6. Sold investments, 9,600 (cost, 11,000). 7. Redeemed debentures, 4,700. 8. Issued at par equity shares, 8,000. 9. Wrote off 2,100 of trade receivables and recognized bad debt expense of 3200, included in selling and administrative expenses. 10. Cost of goods sold includes depreciation of 6,100.

Prepare the statement of cash flows using direct method