It is the end of the 2019 financial year, and Violet Inc is in the process of preparing their financial report They have completed their statement of profit or loss and statement of financial position and now require the statement of cash flows Notes Prepayment is related to other expenses Plant that had a carrying amount of $10,000 was sold for $14,000 cash New equipment purchased for cash amounted to $50,000 All intangibles were acquired for cash An additional borrowing of $10,000 in cash was made during the year Dividends paid in cash were $48,600 Interest received paid is classified as operating and dividends paid is classified as financing Required Prepare the statement of cash flows for Violet Inc for the year ended 31 December 2019, using direct method for presenting cash flows from operating activities Prepare the statement of cash flows for Violet Inc for the year ended 31 December 2019, using indirect method for presenting cash flows from operating activities Violet Inc Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2019 (HKS) Income Sales revenue $800,000 Interest income 5,000 Gain on sale of plant 4,000 809,000 Expenses Cost of sales (480,000) Wages and salaries expense (120,000) Depreciation expense (25,000) Interest expense (4,000) Other expenses (76,000) (705,000) Profit before tax 104,000 Income tax expense 30,000 Profit for the year 74,000 Violet Inc Statement of Financial Position As at 31 December 2019 (HK$) 31 December 2018 Cash $60,000 Accounts receivable 70,000 Inventory 65,000 Prepayment (Note 1) 8,000 Interest receivable 150 Property, plant and equipment (Note 2) 150,000 Land 12,000 Intangible assets (Note 3) 31 December 2019 $56,550 79,000 70,000 9,500 100 165,000 12,000 17,000 Accounts payable Wages and salaries payable Interest payable Income tax payable Long term borrowings (Note 4) Share capital Retained earnings (Note 5) 42,000 4,000 3,000 19,000 60,000 200,000 37,150 45,000 5,000 2,000 24,600 70,000 200,000 62,550

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It is the end of the 2019 financial year, and Violet Inc. is in the process of preparing their financial report. They have completed their

It is the end of the 2019 financial year, and Violet Inc. is in the process of preparing their financial report. They have completed their statement of profit or loss and statement of financial position and now require the statement of cash flows.

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Notes:

Prepayment is related to other expenses.
Plant that had a carrying amount of $10,000 was sold for $14,000 cash. New equipment purchased for cash amounted to $50,000.
All intangibles were acquired for cash.
An additional borrowing of $10,000 in cash was made during the year.
Dividends paid in cash were $48,600.
Interest received / paid is classified as operating and dividends paid is classified as financing.

Required:

Prepare the statement of cash flows for Violet Inc. for the year ended 31 December 2019, using direct method for presenting cash flows from operating activities.

Prepare the statement of cash flows for Violet Inc. for the year ended 31 December 2019, using indirect method for presenting cash flows from operating activities.

Violet Inc. Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2019 (HKS) Income Sales revenue $800,000 Interest income 5,000 Gain on sale of plant 4,000 809,000 Expenses Cost of sales (480,000) Wages and salaries expense (120,000) Depreciation expense (25,000) Interest expense (4,000) Other expenses (76,000) (705,000) Profit before tax 104,000 Income tax expense 30,000 Profit for the year 74,000 Violet Inc Statement of Financial Position As at 31 December 2019 (HK$) 31 December 2018 Cash $60,000 Accounts receivable 70,000 Inventory 65,000 Prepayment (Note 1) 8,000 Interest receivable 150 Property, plant and equipment (Note 2) 150,000 Land 12,000 Intangible assets (Note 3) 31 December 2019 $56,550 79,000 70,000 9,500 100 165,000 12,000 17,000 Accounts payable Wages and salaries payable Interest payable Income tax payable Long-term borrowings (Note 4) Share capital Retained earnings (Note 5) 42,000 4,000 3,000 19,000 60,000 200,000 37,150 45,000 5,000 2,000 24,600 70,000 200,000 62,550