QUESTION 4 The following comparative Balance sheets for the years ended June 30, 2019 and 2020 and income statement information for 2020 for Triple Threat Pty Ltd are set out below: Account June 30 2020 June 30 2019 Cash and cash equivalents S S Debtors 66,880 64,000 Inventory 231,600 157,200 Plant and equipment 96,720 104,400 100,000 75,000 Accumulated depreciation - plant and equipment (40,000) (29,000) Total assets 455 200 371,600 Creditors 71,000 74,400 Accrued expenses 30,000 33,000 Long-term loan 100,000 50,000 Capital and reserves 254,200 214,200 Total liabilities and owners equity 455 200 371,600 Sales 440,000 Less: Cost of goods sold 296,000 Gross profit 144,000 Operating expenses (including depreciation) 84,000 Net profit 60,000 Note: 1. No plant and equipment was sold during the year. 2. Dividends of $20,000 in cash were paid during the year. 3. All sales are on credit. REQUIRED: Prepare a statement of cash flows for the year ended 30 June 2020 using the direct method. ANSWER OVER THE PAGE hed't + beging debts I dedies.Triple Threat Statement of Cash Flows for the year ended 30 June 2020 Cash flows from operating activities Receipts from Customers 365 600 Payments to suppliers & employees (367 720) Net cash provided by operating activities (2120) Cashflows from Investing Activities Purchase of equipment (25,000) Net cash used in investing activities (25,000) Cashflows from Financing Activities Increase in Long Term Loan 50,000 Dividends Paid to Shareholders (20,000) Net cash from financing activities 30,000 Net increase in cash held 2,880 Cash at beginning of year 64,000 Cash at end of year 66,880 Payments to Suppliers for purchases: Creditors Cost of Goods Sold - Beg Inventory + Ending Inventory + Beg Creditors - End 296,000 - 104 400 + 96,720 + 74 ,400 - 71,000 = $291 720 Payments to Suppliers of services & labour: Expenses (less dep'n) - Beg Prepaid Exp + End Prepaid Exp + Beg Accrued Exp - End Accrued Exp (84 000 - 11 000*) - 0 + 0 + 33,000 - 30,000 = $76,000