LO3 PSA11.9 Prepare a statement of cash flows direct and indirect methods. Condensed financial data of Takahashi Electronics Pty Ltd follow. TAKAHASHI ELECTRONICS PTY LTD Statement of financial position as at 30 June 2020 2020 2019 ASSETS Cash $ 47500 $ 23 625 43400 28 500 60 950 51 325 42 300 43 500 125 000 102 500 (24 750) 120 000) $294 400 $229 450 Accounts receivable Inventory Investments long term) Plant and equipment Accumulated depreciation Total assets LIABILITIES AND EQUITY Accounts payable Accrued expenses payable Debentures payable Share capital Retained earnings Total liabilities and equity $26 350 $24 140 6050 9415 50 000 35 000 125 000 100 000 87 000 60 895 $294 400 $229 450 $150 000 4 375 TAKAHASHI ELECTRONICS PTY LTD Statement of profit or loss for the year ended 30 June 2020 Sales Gain on sale of equipment Less: Cost of sales Operating expenses, excluding depreciation expense Depreciation expense Income tax 154 375 $49730 7335 24850 3635 2720 88 270 Interest expense Profit $ 66 105 Additional information: 1. New equipment and machinery were purchased for cash during the year. 2. Investments were sold at cost. 3. Equipment costing $23500 was sold $7775, resulting in a gain of $4375. 4. A cash dividend of $40 000 was declared and paid during the year. 5. Accounts payable pertain to inventory creditors. Required a. Prepare a statement of cash flows using the direct method. b. Prepare a reconciliation of profit to cash provided by operations