Based on the answer sheet, how do you find the figures for "Add" and "Less" column (for interest receivable, interest payable and income tax payable)?

Question:

Answer:

Question 1: Statement of Cash Flows Extracts from the Statement of Financial Position of Reliable Safety Driving Centre Ltd as at 30 June 2017 included the following: 2016 $ Reliable Safety Driving Centre Ltd Statement of Financial Position as at 30 June 2017 $ Current assets: Cash 24,500 Accounts receivable 45,900 Interest receivable 2,900 Inventories 68,600 Prepaid expenses 3,700 Long term investment 10,100 Equipment, net 74,500 Land 42,400 272,600 8,600 48,300 3,600 60,200 2,800 5,200 73,600 96,000 298,300 Current liabilities: Notes payable, short term Accounts payable Income tax payable Accrued liabilities Interest payable Salary payable Long term note payable Paid up capital + share premium Retained earnings 13,400 42,400 13,800 8,200 3,700 900 47,400 59,800 83,000 272,600 18,100 40,300 14,500 9,700 2,900 2,600 94,100 51,200 4,900 298,300 Additional information: a) b) Net profit, $56,200. This amount includes $10,600 of interest revenue, $6,100 of interest expense and $9,900 of income tax expense. Depreciation expense on equipment, $13,400 Purchased long term investment, $4,900 Sold land for $46,900, including $6,700 loss Acquired equipment by issuing long term note payable, $ 14,300 Paid long term note payable, $61,000 Received cash for issuance of ordinary shares, $3,900 Paid cash dividends, $38,100 Paid short-term note payable by issuing ordinary shares, $4,700 g) h) Required: Prepare the cash flow statement for year ended 30 June 2017 using the indirect method for the cash flows from operations. $ $ Cash flows from operating activities Profit before taxation 66,100 Adjustments for: Depreciation 13,400 Loss on disposal of land 6,700 Interest income (10,600) Interest expense 6,100 Decrease in accounts receivables 2,400 (Increase) in inventories (8,400) (Increase) in prepaid expenses (900) Increase in accounts payables 2,100 (Decrease) in accrued liabilities (1,500) (Decrease) in salary payable (1,700) Cash generated from operations 73,700 Interest received 11,300 (Interest paid) (5,300) (Income taxes paid) (10,600) Net cash from operating activities 69,100 Cash flows from investing activities Sale of land 46,900 Purchase of long-term investments (4,900) Net cash from/ (used in) investing activities 42,000 Cash flows from financing activities Issue of ordinary shares 3,900 Repayment of long-term note payable (61,000) Dividends paid (38,100) Net cash from/ (used in) financing activities (95,200) Net increase/(decrease) in cash and cash equivalents 15,900 Cash and cash equivalents at beginning of period 8,600 Cash and cash equivalents at end of period 24,500 Op Bal Add Less CI Bal 3,600 10,600 (11,300) 2,900 Interest receivable Interest payable Income tax payable 2,900 6,100 (5,300) 3,700 14,500 9,900 (10,600) 13,800