The financial statements of Lewis Limited appear below: LEWIS LIMITED Comparative Statement of financial positions- 31 December 2017 2017 2016 Assets Cash $ 44,000 $ 23,000 34,000 26,000 20,000 15,000 Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Total 78,000 50,000 (20,000 (24,000 $120.000 $126.000 $ 15,000 $ 23,000 13,000 8,000 Liabilities and Equity Accounts payable Income taxes payable Share Capital Retained earnings Total 48,000 48,000 44,000 47.000 $120.000 $126.000 e t t t LEWIS LIMITED Income Statement- for the year ended 31 December 2017 Sales $350,000 Cost of sales 280.000 Gross profit 70,000 $20,000 Selling expenses Administrative expenses 16,000 Interest expense 4,000 Income before income taxes 30,000 Income tax expense 10.000 Profit after income tax $ 20.000 The following additional data were provided: 1. A cash dividend was declared and paid during the year. 2. During the year an equipment was sold for $12,000 cash. This equipment cost $28,000 originally and had a carrying amount of $12,000 at the time of sale. 3. All depreciation expense is in the selling expense category. 4. All sales and purchases are on account 5. Accounts payable pertain to inventory purchase. 6. Selling and administrative expenses (except for depreciation) of $24,000 were paid in cash. Required: Prepare a statement of cash flows for Lewis Limited using the direct method. (11 marks) LEWIS LIMITED Statement of Cash Flows For the year ended 31 Dec 2017 CASH FLOW FROM OPEARATING ACTIVITIES e ] CASH FLOW FROM INVESTING ACTIVITIES CASH FLOW FROM FINANCING ACTIVITIES 7 ] e NET INCREASE (DECREASE) IN CASH CASH AT THE BEGINNING OF PERIOD CASH AT THE END OF PERIOD