Prepare Cash Flow using Indirect Methods

Financial Position 2015 2014 Assets 5 5 Cash 9,000 15,000 Debtors 25,000 31,000 Stocks 60,000 45,000 Fixed Assets 120,000 105,000 214,000 196,000 Liabiliities Share Capital 6% Debentures due on 31 May 2017 Retained earnings Creditors Income tax payable Accumulated depreciation 214,000 196,000 Income Statement for the year ending 315t May 2015 2014 $ $ Sales 425,000 450,000 Operating expenses {include depreciation $10,000) 340,000 380,800 Interest on Debentures 3,000 4,200 Net Profit Before Tax (PBT) 82,000 65,000 Income Tax 36,000 27,500 45,000 37,500 Statement of Retained Earnings 2015 2014 $ $ Retained earnings Beginnings 27,500 25,000 Net profit for the year 46,000 37,500 Net Profit Before Tax (PBT) 73,500 62,500 Income Tax 35,000 35,000 38,500 27,500 Required : Prepare Cash Flow Statement (Indirect Method)