Sunflower Ltd Balance Sheet As of 30 June 2019, and 2020 ASSETS Cash 53,700 57,000 Accounts receivable 52,000 10,000 Allowance for doubtful debts (14,000) (10,000) Inventory 78,500 32,000 Prepaid insurance 14,000 11,000 Land 40,000 60,000 Buildings 250,000 110,000 Less: Accumulated depreciation - buildings (25,000) (11,000) Equipment 142.000 70,000 Less: Accumulated depreciation - equipment (24,000) (12,000) TOTAL ASSETS $567,200 $317,000 14,000 LIABILITIES AND EQUITY Accounts payable Interest payable Accrued expenses Tax payable Short-term loan Share capital Revaluation reserve General reserve Retained profits TOTAL LIABILITIES AND EQUITY 65,000 58,000 4,000 2,000 7,000 4,000 12,000 65,000 120,000 250,000 15,000 8,000 20,000 129,200 36,000 $567,200 $317,000 63,000 12,000 Sunflower Ltd Income Statement For the year ended 30 June 2020 Sales 898,000 Cost of goods sold Bad debts expense Insurance expense Interest expense Salaries and wages Other expenses Loss on sale - equipment 460,000 15,000 5,000 22,000 75,000 66,400 1,000 644,400 253,600 Other income: Gain on sale of land Interest revenue Profit before tax Income Tax Expense Net Profit After Tax 3,000 3,000 259,600 -65,000 $194,600 Additional Information All sales were on credit and the company purchased all inventory on credit. The company spent $10,000 to buy back 1,000 shares that were originally issued at $7 each. The company revalued their land upwards this year. The company issued $5,000 worth of bonus shares out of revaluation reserves. The company sold some land for cash. The company sold an equipment (carrying value of $36,000 and an original cost of $41,000). The company did not sell any buildings during the financial year. The company did not revalue any other non-current assets. 1) Prepare Operating Cash Flows using DIRECT method 2) Prepare Financing Cash Flows using INDIRECT method