ControlHere are the financial statements of Milton Mower Centre Ltd:

Milton Mower Centre Ltd

Statement of Financial Position

as at $31$ December

$20222021$

ASSETS

Cash $$38,100$ $$13,500$

Accounts receivable $16,00018,000$

Inventory $42,00045,000$

Property, plant and equipment $94,000102,000$

Accumulated depreciation $(23,500)(24,000)$

Total assets $$166,600$ $$154,500$

LIABILITIES AND EQUITY

Accounts payable $$28,000$ $$24,000$

Income tax payable $8,5009,500$

Notes payable $27,00036,000$

Share capital $30,00027,000$

Retained earnings $73,10058,000$

Total liabilities and equity $$166,600$ $$154,500$

Milton Mower Centre Ltd

Statement of Profit or Loss

for the year ended $31$ December $2022$

Sales $$530,000$

Cost of sales $(380,000)$

Gross profit $150,000$

Operating expenses $(47,500)$

Interest expense $(2,400)$

Profit before income tax $100,100$

Income tax expense $(25,000)$

Profit after income tax $$75,100$

The following additional data were provided:

$1.$ All sales and purchases are on account.

$2.$ All operating expenses except depreciation are paid in cash.

$3.$ Depreciation expense of $$15,500$ for the year ended $31$ December $2022$ is included in the

operating expenses.

$4.$ Interest expense is paid in cash.

Semester One Examinations, $2023$ ACCT$1110$

Page $6$ of $8$

$5.$ Accounts payable relates solely to inventory creditors. Inventory comprises gardening tools

and equipment ready for sale to customers.

Required:

Prepare the cash flows from operating activities section of Milton Mower Centre Ltd$$s Cash Flow

Statement for the year ended $31$ December $2022$ using the direct method. Please round your answers

to the nearest dollar. Please show your working