Question 3 (20 marks) The following comparative statements of financial position and income statement are for the business of Leone Ltd: LEONE LTD Comparative Statements of Financial Position as at 30 June 2020 2019 ASSETS Cash at bank 22 000 42 000 Accounts receivable 93 000 80 000 Interest receivable 3 000 1 000 Inventory 135 000 138 000 Prepaid expenses 8 000 7 000 10 year loan to Boot Ltd 11 000 0 Plant and machinery(net) 453 000 219 000 $725 000 $487 000 LIABILITIES AND EQUITY Accounts payable $ 91 000 $ 57 000 Salaries payable 4 000 6 000 Expenses payable 1 000 3 000 10 year debentures 160 000 77 000 Share capital 359 000 258 000 Retained earnings 110 000 86 000 $725 000 $487 000 LEONE LTD Income Statement for year ended 30 June 2020 INCOME Sales revenue Interest revenue Gain on sale of machinery $284 000 21 000 8 000 313 000 EXPENSES Cost of sales Salary expense Depreciation - plant and machinery Other expenses Interest expense Income tax expense PROFIT $150 000 56 000 18 000 17 000 16 000 15 000 272 000 $ 41 000 Additional information (i) New machinery costing $306 000 was purchased for cash during the year. (ii) Old machinery with a net value of $54,000 was sold for cash. (iii) A cash dividend has been paid to shareholders. Required: Prepare the statement of cash flows for the year ended 30 June 2020, using the t-account method