Question 1 (15 marks)

The financial statements for Tiger Limited for the financial years ending 30 June 2018 and 2017 are presented below:

Tiger Ltd
Balance Sheet as at 30 June...
Assets	2018	2017
Cash	25,000	10,000
Accounts receivable	90,000	60,000
Inventory	160,000	100,000
Prepaid Expenses	10,000	20,000
Land	100,000	-
Machinery	130,000	145,000
Accumulated depreciation	(35,000)	(35,000)
Total assets	$480,000	$300,000
Question continued from previous page Liabilities and Equity
Accounts payable	48,000	20,000
Tax payable	22,000	30,000
Long-term loan	140,000	-
Share capital	200,000	200,000
Retained earnings	70,000	50,000
Total liabilities and equity	480,000	300,000

Tiger Ltd
Income Statement
for the year ending 30 June 2018
Sales	200,000
Cost of sales	(70,000)
Gross profit	130,000
Other Gain on sale machinery	10,000
	140,000
Distribution expenses	(30,000)
Administrative expenses	(40,000)
other operating expense	(10,000)
Total expenses	(80,000)
Net profit before tax	60,000
Tax expense	(20,000)
Net profit after tax	40,000

Additional Information:

• The depreciation expense for the year is $35,000, which has been included in the administrative expenses on the Income Statement.
• Machinery costing $50,000 was sold during the year making a gain on sale of $10,000. New machinery was purchased during the year for cash.

Required:

Prepare a Statement of Cash Flows using the direct method for Tiger Mart Ltd at 30 June 2018. The reconciliation of profit to cash (indirect method) is NOT required.