QUESTION 4: Cash Flow Statement (16 marks) ART You are provided with the following financial information for Driving Accessories, owned by Mr Dave Driver: Dave Driver trading as Driving Accessories COMPARATIVE BALANCE SHEETS AS AT 30 JUNE 2020 2019 Current Assets Cash at Bank 31 000 7 200 Accounts Receivable (net) 32 800 41 000 Inventory 18 000 21 000 Prepaid Expenses 8 000 $89 800 12 000 $81 200 Non-Current Assets Delivery vehicles 450 000 410 000 Less: Accum. Delivery vehicles (28 200) 421 800 (21 000) 389 000 Total Assets 511 600 470 200 Current Liabilities Accounts Payable 18 000 20 000 Expenses Payable 2 000 3 000 Tax Payable 16 400 36 400 22 000 45 000 Non-Current Liabilities Bank Loan 25 000 25 000 Total Liabilities 61 400 70 000 Net Assets $450 200 $400 200 Equity Capital - D Driver 450 200 400 200 $450 200 $400 200 11/* 15:16 51:1 34: 2667 MASKSDave Driver Trading as Driving Accessories CASH FLOW STATEMENT FOR THE YEAR ENDING 30 JUNE 2020 Cash Flows from Operating Activities Receipts from customers Payments to suppliers & employees Cash generated by operations Interest paid Income tax paid Cash Flows from Investing Activities Interest received Payment for Delivery Vehicles Cash Flows from Financing Activities Drawings Net increase / decrease in cash held Cash at the beginning of the year Cash at the end of the year ALL WORKINGS MUST BE PRESENTED BELOW OR YOUR CASH FLOW STATEMENT WILL RECEIVE NO MARKSDave Driver trading as Driving Accessories INCOME STATEMENT FOR THE YEARENDED 30 JUNE 2020 Net Sales $207 000 Cost of Sales 99 000 Gross Profit: 108 000 Other Revenue: Discount Received $4 500 Interest Revenue 11 000 15 500 123 500 Expenses: Selling & Admin Expense 24 000 Doubtful Debts Expense 3 500 Depreciation Expense 7 200 Interest Expense 2 800 37 500 Profit before tax 86 000 Income Tax Expense 26 000 Profit $60 000 ANSWER THIS QUESTION ON THE PRO FORMA PROVIDED REQUIRED: a. Prepare a Statement of Cash Flows in the pro forma provided on the following page. You must show all calculations (an answer without supporting calculations will receive zero marks) (16 marks)