Question 17: Statement of Cash Flows [20 Marks) Suggested Time: You should spend about 35 minutes on this section Part A Shangri-la Fiji has been a popular resort for tourists. Below are the selected financial statements of the company. Shangri-la Fiji Statement of Financial Performance as at 30 June 2020 Revenue Sales $443,500 Less expenses Cost of sales $283,000 Depreciation - equipment $5,000 Depreciation - buildings $15,000 Interest Expense $5,000 Employee Expense $98,000 Loss on sale of land $6,250 $412,250 Profit for the year $31,250 OCI Foreign currency translation $800 Gain on pension fund $20 Total Comprehensive Income $30,430 Shangri-la Fiji Statement of Financial Position as at 30 June 2020 Assets 2020 2019 Cash at bank $43,000 62000 Accounts Receivable $84,500 $76,000 Inventories $113,500 $124,000 Equipment $40,000 $40,000 Accumulated Depreciation - Equipment $10,000 $5,000 Land $25,000 $62,500 Buildings $265,000 $137,500 Accumulated Depreciation - Building $100,000 $85,000 Total Assets $461,000 $412,000 Liabilities Accounts Payable $67,000 $60,500 Interest Payable $250 $750 Provision for employee benefits $3,000 $8,750 Long Term Loan $66,250 $45,000 Equity Share Capital $125,000 $125,000 Retained Earnings Total Liabilities and Equity $199,500 $172,000 $461,000 $412,000 Additional information (a) During the year ended 30 June 2020, cash dividends were paid to shareholders. (b) Building extensions were paid for during the year, and a block of land, costing $37 500 was sold for $31 250 cash. (C) No plant was purchased or sold during the year. Required: (a) Prepare the statement of cash flows of Shangri-la Fiji for the year ended 30 June 2020 based on the direct method of presentation. [10 Marks You must provide and label all supporting calculations in the answer booklet. (b) Show how cash flows from operating activities would be presented in the statement if the indirect method of presentation were used. [10 marks)