Below are the comparative statements of financial pos ition of Lithium Ltd LITHIUM LTD Comparative Statements of Financial Pos ition as at 30 June 2017 2018 ASSETS Petty cash Cash at bank Bank bills S 200 24 200 S 400 30 600 10 000 12 000 Accounts receivable Allowance for doubtful debts Inventory Motor vehicles S102 960 (6 960) S127 400 96 000 11 400 116 000 70 800 74 600 42 000 50 400 Acc. depr. -motor vehicles Office furniture Acc depr. -off furn. (10 .000 32 000 12 800 37 600 16 000 18 400 (7 600) 8 400 $245 400 (8 400 10 000 $277 400 LIABILITIES AND EQUITY Accounts payable Current tax liability Share capital Retained earnings $ 45 000 $ 47 200 3 200 4 200 196 000 165 000 32 200 $245 400 30 000 $277 400 Additional information (a) Income statement details were: sales revenue $750 000; cost of sales $603 000; expenses $116 360 (excludes depreciation and carrying amount of vehicle sold); bad debts expense $14 440; and tax expense $4200 (b) A dividend was paid during the year. (c) A vehicle that cost $5600 originally was sold during the year for $3000. The vehicle had been depreciated by $3200 at date of sale. (d) The company pays tax in one instalment. The single instalment of $3200 due by 21 October 2017 was paid Required Prepare a statement of cash flows for the year ended 30 June 2018 in accordance with the direct method using t accounts. 1