Question 3 (20 marks) The following data relate to Lux Ltd. $1 215 000 Lux Ltd - Income Statement for the year ended 30 June 2020 INCOME Sales Revenue EXPENSES Cost of sales $720 000 Depreciation - Machinery 30 000 Depreciation-buildings 15 000 Other expenses 331 500 PROFIT 1 096 500 S 118 500 Lux Ltd Comparative Statements of Financial Position as at 30 June 2020 2019 ASSETS Cash at bank Accounts Receivable Inventory Investments Machinery Buildings Land $39 000 135 000 150 000 18 000 300 000 240 000 150 000 $1 032 000 55 500 144 000 120 000 15 000 225 000 150 000 67 500 $777 000 Total Liabilities and Equity Accounts Payable Expenses Payable Mortgage Payable Share Capital Retained earnings $112 500 4 500 225 000 450 000 240 000 $1 032 00 97 500 6 000 132 000 375 000 166 500 $777 000 Total Additional information 1. Dividends were paid during the year. 2. The increases in investments and machinery were from cash purchases. 3. The increases in land and buildings were from purchases but were partly funded by an increase in the mortgage with the bank. 4. Share capital was issued during the year for cash. Required Prepare the statement of cash flows for Lux Ltd for the year ended 30 June 2020, using the direct method