The following comparative statements of financial position and income statement are for the gardening business of Pete Moss Pty Ltd: PETE MOSS PTY LTD Comparative Statements of Financial Position as at 30 June 2019 2018 ASSETS Cash at bank $ 147 000 $ 57 600 Accounts receivable 136 200 49 500 Inventory 168 750 154 275 Prepaid expenses 27 600 24 000 Investments 162 000 141 000 Plant and machinery 405 000 363 750 Accumulated depreciation - plant and machinery (75 000 (78 000) $971 550 $971 550 LIABILITIES AND EQUITY Accounts payable $ 138 000 $ 100 950 Expenses payable 25 050 25 500 Loans Payable 127 500 150 000 Share capital 330 000 277 500 Retained earnings 351 000 158 175 $971 550 $971 550 DETE MOCO DTV ITN (Australia) Focus $513 000 PETE MOSS PTY LTD Income Statement for year ended 30 June 2019 INCOME Sales revenue EXPENSES Cost of sales $173 190 Loss on sale of machinery 11 250 Depreciation - plant and equipment 69 750 Other expenses 18 615 Interest expense 3 345 Income tax expense 10 500 PROFIT 286 650 $ 226 350 Additional information: (a) New machinery costing $127,500 was purchased for cash during the year. (b) Old machinery having an original cost of $86,250 was sold for $2,250 cash. (c) A cash dividend had been paid to shareholders. Required: Prepare the statement of cash flows for the year ended 30 June 2019, using the T-account method. All workings should be shown