Question 3 (20 marks] The following comparative statements of nancial position and income statement business or Leone Ltd: LEONE LTD Comparative statements of Financial Position as at on June 2020 2019 ASSETS Cash at bank 22 DOB 42 000 Accounts receivable 93 000 BO 000 Interest receivable 3 000 1 000 Inventory 135 000 138 000 Prepaid expenses 3 poo r 000 10 year loan to Boot Ltd 11 DUO 0 Plant and machineryrnet] 453 DUO 219 000 $12M seamen LIABILITIES AND EQUITY Accounts payable :3 91 ooo $ 5? 000 Salaries payable 4 poo s 000 Expenses payable 1 poo 3 000 10 year debentures 160 000 T? GOD Share capital 359 000 258 GOD Retained earnings 110 000 86 GOD 512531011 $4M LEONE LTD Income statement for year ended 3|] June 2020 INCOME Sales revenue $284 000 Interest revenue 21 mo Gain on sale of machinery.r 3 000 313 000 EXPENSES Cost or sales $150 ooo Salary expense 5-6 ooo Depreciation plant and machinery 1B ooo Other expenses 1? ooo Interest expense 16 000 Income tax expense 15 000 272 000 PROFIT 9 sum Additional information [i] New machinery costing $305 000 was purchased for cash during the your. (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 forlhe year ended 30 June 2020, using the Laccount method. TFA Final Exam Spring, 2020 Page 12 pH