Q5. Cash Flow Statement (24 marks) The financial statements for Dodgers Ltd for fiscal years 2020 and 2021 are presented below: Dodgers Ltd Comparative Statement of financial positions 30 June 2021 2021 2020 Assets $ 52 500 Cash Accounts receivable Inventories $ 27500 20 000 21 400 35 300 18 800 12 000 18 500 96 200 94 800 Prepaid expense Plant and equipment Accumulated depreciation Total (34 400 (48 800) $130 800 $183 000 $ 32 000 16 800 Liabilities and Equity Accounts payable Accrued expense (Expense payable) Interest payable Share Capital Retained earnings Total $ 37 600 12 000 10 200 16 400 57 800 57 800 60 000 $183 000 13 200 $130 800 Dodgers Ltd Income Statement for the year ended 30 June 2021 Sales $155 000 Less: $56 000 35 700 Cost of sales Selling and administrative expense Income taxes expense Interest expense 8 400 6 900 97 000 Profit after income tax $_48.000 Additional information: 1. A cash dividend was declared and paid during the year. 2. During the year, plant and equipment asset was sold for $15 600 cash. This plant and equipment cost $40 200 originally and had a carrying amount of $15 600 at the time of sale. 3. Purchase of plant & equipment were paid on cash. 4. All depreciation expense is included in the selling and administrative expense category. 5. Accounts payable pertain to inventory purchases. 6. Selling and administrative expenses (except for depreciation) and income taxes expense were paid in cash. 7. All sales and purchase were made on credit. Required: Prepare a statement of cash flows for the year using the direct method