The following are the financial statements of Carey Sports and Outdoors Ltd at 30 June 2021: Carey Sports and Outdoors Ltd Statement of Financial Performance for the year ended 30 June 2021 Sales $ 194,000.00 Less Cost of goods sold $ 92,400.00 Gross profit $ 101,600.00 Add other revenues Interest $ 8,600.00 $ 110,200.00 Less other expenses Depreciation - equipment $ 4,000.00 Wages $ 27,800.00 Interest $ 11,600.00 Other Operating Expenses $ 10,500.00 Total expenses $ 53,900.00 Profit before tax $ 56,300.00 Less Income tax expense $ 9,100.00 Profit after tax $ 47,200.00 Note Shareholder's equity at beginning of year $ 67,400.00 Net Profit $ 47,200.00 Increase in share capital $ 23,600.00 Dividends paid or declared -$ 29,200.00 Shareholder's equity at the end of the year $ 109,000.00 Carey Sports and Outdoors Ltd Statement of Financial Position as at 30 June 2021 2021 2020 Current assets Cash at bank $ 6,400.00 $ 5,300.00 Trade debtors $ 28,600.00 $ 26,900.00 Inventories $ 83,600.00 $ 87,200.00 Prepayments $ 2,500.00 $ 1,900.00 Interest Receivable $ 1,900.00 $ 700.00 Total current assets $ 123,000.00 $ 122,000.00 Non-current assets Equipment $ 135,600.00 $ 127,500.00 Accumulated depreciation - motor vehicles -$ 32,100.00 -$ 28,100.00 Land $ 19,000.00 $ 10,000.00 Total non-current assets $ 122,500.00 $ 109,400.00 Total assets $ 245,500.00 $ 231,400.00 Current liabilities Creditors $ 41,400.00 $ 38,800.00 Accrued expenses $ 11,200.00 $ 17,500.00 Income tax payable $ 8,900.00 $ 7,700.00 Total current liabilities $ 61,500.00 $ 64,000.00 Non-current liabilities Mortgage $ 75,000.00 $ 100,000.00 Total non-current liabilities $ 75,000.00 $ 100,000.00 Total liabilities $ 136,500.00 $ 164,000.00 Net assets $ 109,000.00 $ 67,400.00 Shareholders' equity Share capital $ 88,300.00 $ 64,700.00 Retained earnings $ 20,700.00 $ 2,700.00 Total shareholders' equity $ 109,000.00 $ 67,400.00 Continued... 12 BFA104 Accounting Context and Method Required: a. Complete the cash flow statement for the year ended 30 June 2021. Use the Excel templates provided. [9 marks] b. The statement of cash flows provides useful information to managers that enables them to make informed decisions. The statement of financial performance may show an accrual profit, however, an accrual profit doesn't necessarily mean the entity has adequate cash flow to remain solvent. The operating section of the cash flow statement provides managers with information about the principle revenue-producing activities of the entity. Negative cash flows from operating activities is particularly concerning. Identify and explain five (5) decisions management could make to improve cash flows from operating activities. [10 marks]