stio Below is information relating to Tiki Pty Ltd Balance Sheet and Income Statement for the year ended 20 June 2012. 2012 Assets Cash Accounts receivable Inventory Investments Plant and equipment Accumulated depreciation Total Assets 2011 $96,700 47,250 57,000 121,900 102,650 87,000 250,000 205,000 (49.500) 40000) 86,800 84,500 Accounts payable Accrued expenses payable Debentures Share capital Retained profits Total Liabilities and Equity S 52,700 48,280 18,830 70,000 250,000 200,000 175,600 121,79 590.400 458,900 12,100 100,000 Sales Less Cost of Sales Gross Profit Gain on sale of equipment $297,500 99,460 198,040 8,750 206,790 Operating expenses- excluding depreciation expense Depreciation expense nterest expense Net profit before tax Income Tax Net profit after tax Additional Information 14,670 49,700 2940 7.310 139,480 7.270 132,210 1. New equipment and machinery was purchased for cash during the year 2. Investments were sold at cost 3. Equipment costing $47,000 was sold for $15,550, resulting in a gain of $8,75o 4. A cash dividend was declared and paid during the year. 5. Accounts payable pertain to inventory creditors. Required: 1.Prepare a statement of cash flows for Tiki Pty Ltd using the direct method. 2.What are the advantages of preparing Cash Flow Statement