QUESTION TWO (15 MARKS) The information below relates to BIO Investments Pty Limited for the year ended 30 th June 2017. Bank balance as at 1 July 2016 -$22,000 Cash paid to suppliers 192,200 Cash from customers 294,000 Payments for wages and expenses 25,000 Proceeds from borrowing 6,600 Income tax paid 20,000 Depreciation of equipment 35,600 Bank balance as at 30 th June 2017 17,900 Cash from interest received 20,500 Provision for outstanding employee bonuses 15,200 Cash received from sale of a property 55,000 Cash paid for purchase of equipment 40,000 Gain after revaluation of land 100,000 Dividends paid 29,000 Income tax relating to the year ended due to be paid in three months 20,000 Interest paid 30,000 REQUIRED:

a. Prepare a cash flow statement for the 12 months ended 30 th June 2017 by allocating each item under cash flow from operating activities, cash flow from investing activities and cash flow from financing activities.

b. Comment on BIO Investments cash position.