Pharmacy Adelaide Ltd Comparative Statements of Financial Positionas at 30 June 2023 ASSETS20222023Cash at Bank36,740

27,500Accounts Receivable40,700 67,166Consultation Service Receivable1,100 2,200Inventory112,915 134,090Prepaid Insurance10,450 7,150Land117,700 92,950Property, Plant and Equipment225,500 341,000Accumulated Depreciation PP&E-44,000 -51,150 501,105 620,906LIABILITIES Accounts Payable53,108 68,970Interest Payable20,680 13,750Income Tax Payable1,100 2,200Other Expenses Payable14,850 16,500Debentures Payable271,557 302,500Share Capital85,910 149,160Retained Earnings53,900 67,826 501,105 620,906

Adelaide Pharmacy Ltd

Statement of Profit and Loss and Other Comprehensive Income

for the year ended 30 June 2023

Sales$216,700Less : Cost of Sales -109,406GROSS PROFIT 107,294Add : Other Income Consultation Service Revenue22,550 Gain on Sale of Property, Plant & Equipment5,50028,050 135,344Less: Expenses: Interest Expense3,234 Income Tax Expense7,997 Other Operating Expenses55,18766,418NET PROFIT $68,926

Additional information:

1. Property, Plant and Equipment costing $161,000 was purchased for cash during the year.

2. Property, Plant and Equipment costing $45,500 was sold during the year.

3. Other operating expenses include $35,500 depreciation expense on Property, Plant and Equipment

4. All sales and purchases of inventory were on credit.

5. Land was sold at cost.

6. Ignore taxes.

Required:

A. Prepare the Statement of Cash Flows for Pharmacy Adelaide Ltd for the year ended 30 June 2023 using the direct method.

B. Reconcile profit and net cash provided (used) by operating activities using the indirect method.