Cash flows from operating activities Opposite are the comparative statements of financial position of Cresta Ltd as at 30 June 2019 and 2020, and the income statement and statement of changes in equity for the year ended 30 June 2020 idditional informanorn 1. Other expenses include $66 000 depreciation expese on machinery and insurance expense of $10 500 2. All sales and purchases are on credit. 3. Rental income is earned as a result of renting part of the property that is in excess of the company's needs. Required (a) Prepare the cash flows from operating activities only for Cresta Ltd for the year ended 30 June 2020, using the direct method. Ignore taxes CRESTA LTD Comparative Statements of Financial Position as at 30 June 2019 2020 ASSETS 19500 Cash at bank S 69000 Accounts receivable 112500 100500 198000 246000 Prepaid insurance Property Machinery 10500 500 134 400 120000 900000 1080000 201000 (243000) 173900 $1380000 LIABILITIES AND EQUITY Accounts payable Interest payable Other accrued expenses Mortgage payable Share capital Retained earnings 06000 75000 10200 9000 13500 21 000 360000 435000 300000 424 200 510000 330000 $1 173900 $1380000 CRESTA LTD Income Statement for the year ended 30 June 2020 $1260000 843 000 Sales Less: Cost of sales GROSS PROFIT 417 000 Add: Other income: Lease income $ 22 500 27 000 Gain on the sale of machinery 49 500 466 500 Less: Expenses: Interest expense Loss on the sale of property Other expenses 34 500 30 000 321 000 385 500 PROFIT S81000 CRESTA LTD Statement of Changes in Equity for the year ended 30 June 2020 Share Other Retained Total capital earnings reserves S 724200 Balance at 1/7/19 $300000 424200 81000 Total comprehensive income for the period Dividends 81 000 210000 (175200) (175200) 210000 Issue of share capital Balance at 30/6/20 $510000 S 330000 S 840000 (Lo8)