Lunar Company (Pty) Ltds balance sheets for the last two years are provided below

Balance Sheets 2013 2012

Cash R 82,000 R 40,000

Accounts Receivable 180,000 150,000

Inventory 170,000 200,000

Equipment 200,000 140,000

Accum. Depreciation (72,000) (60,000)

Total Assets R560,000 R470,000

Accounts Payable R100,000 R 80,000

L/T Notes Payable 100,000 50,000

Ordinary Shares 250,000 250,000

Retained Earnings 110,000 90,000 Total Liabilities & Shareholders Equity R560,000 R470,000

The companys income statement for 2013 is provided below:

Income Statement 2013 Sales R345,000 Expenses: Cost of Goods Sold R120,000 Operating Expenses 58,000 Depreciation Expense 20,000 Interest Expense 2,000 200,000 Operating Income 145,000 Gain on Sale--Equipment* 5,000 Income before Taxes 150,000 Tax Expense 30,000 Net Income R120,000 *The company sold equipment for R57, 000 that had a cost of R60, 000 Required: Prepare the companys Statement of Cash flows for 2013. Use the direct method of computing cash flows from operating activities.