QUESTION 1: Statement of cash flows Comparative information as at 30 June 2023 and 30 June 2024 for Declare Ltd is as follows. Assets Cash at bank Accounts receivable Inventory Land Buildings Accumulated depreciation - buildings Plant and equipment Accumulated depreciation plant and equipment Liabilities and equity Accounts payable Interest payable Other expenses payable Mortgage loan payable Share capital Retained earnings DECLARE LTD Comparative statements of financial position as at 30 June Additional information 1. Gross profit for the year ended 30 June 2024 was $160,500 and consisted of the following. Sales Cost of sales 443,500 283,000 2023 2024 62,000 43,000 76,000 84,500 124,000 113,500 62,500 25,000 137,500 265,000 (85,000) (100,000) 40,000 40,000 (5,000) (10,000) 412,000 461,000 60,500 67,000 750 250 8,750 3,000 45,000 66,250 125,000 125,000 172,000 199,500 412,000 461,000 3. All purchases and sales of inventories were on credit. 2. Purchases of inventory for the year were $272,500. 4. Profit for the year ended 30 June 2024 was $31,250, after deducting expenses of $129,250 from the gross profit figure. 5. Expenses of $129,250 include depreciation on buildings, and on plant and equipment, a loss on sale of land, and $5,000 in interest expense. During the year ended 30 June 2024, cash dividends were paid. 6. 7. 8. Building extensions were paid for during the year, and a block of land, costing $37,500, was sold for $31,250 cash. No plant was purchased or sold during the year. Required (a) Prepare the Statement of Cash Flows for Declare Ltd for the year ended 30 June 2024 using the direct method. (b) Complete T-accounts to show your workings for preparing the Statement of Cash Flows for Declare Ltd.