End of Chapter Exercise 18.10 The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd: Bargains Galore Pty Ltd Comparative statements of financial position as at 30 June 2019 2020 Assets Cash at bank $21,000 $30,000 Accounts receivable 77,000 63,000 Inventory 56,000 71,350 Prepaid expenses 40,000 32,000 Plant and equipment 700,000 749,000 Accumulated depreciation - plant and equipment (150,000) (190,000) $744,000 $755,350 Liabilities and equity Accounts payable $236,000 $207,000 Expenses payable 24,000 34,000 Current tax liability 49,000 45,000 Share capital 300,000 300,000 Retained earnings 135,000 169,350 $744,000 $755,350 Bargains Galore Pty Ltd Income statement for year ended 30 June 2020 Income Sales revenue $815,000 Expenses Cost of sales $415,650 Wages and salaries 163,000 Depreciation - plant and equipment 40,000 Other expenses 76,000 Income tax expense 48,000 742,650 Profit 72,350 Additional information a) All sales and purchases of inventory are on credit. b) Income tax is paid in one instalment during the year. c) A dividend had been paid to shareholders. d) Additional plant had been acquired for a cash outlay. Bargains Galore Pty Ltd Statement of cash flows for the year ended 30 June 2020 Cash flows from operating activities Cash receipts from customers 829000 $1 Cash paid to suppliers and employees -681000 Cash generated from operations 148000 > Income taxes paid -52000 Net cash from operating activities 96000 Cash flows from investing activities Purchase of plant and equipment -49000 -49000 Net cash used in investing activities Cash flows from financing activities Dividends paid -38000 Net cash used in financing activities -38000 Prepare the statement of cash flows for the company for the year ended 30 June 2020. Use the indirect method. (Show amounts that decrease cash flow using either a negative sign, e.g. -15,000, or parentheses, e.g. (15,000).) Bargains Galore Pty Ltd Statement of cash flows for the year ended 30 June 2020 Inflows (Outflows)