The following comparative statements of financial position and income statement are for the business of Bargains Galore Pty Ltd:

Bargains Galore Pty Ltd

Comparative statements of financial position

as at 30 June20192020AssetsCash at bank

$15,000$22,000

Accounts receivable70,00055,000Inventory50,00067,000Prepaid expenses40,00035,000Plant and equipment500,000540,000Accumulated depreciation plant and equipment(150,000)(190,000)$525,000$529,000Liabilities and equityAccounts payable$33,000

$10,000Expenses payable22,00030,000Current tax liability45,00041,000Share capital300,000300,000Retained earnings125,000148,000$525,000$529,000

Bargains Galore Pty Ltd

Income statement

for year ended 30 June 2020Income

Sales revenue$800,000ExpensesCost of sales$408,000Wages and salaries160,000Depreciation plant and equipment40,000Other expenses75,000Income tax expense40,000723,000Profit77,000

Additional informationa)All sales and purchases of inventory are on credit.

b)Income tax is paid in one instalment during the year.c)A dividend had been paid to shareholders.d)Additional plant had been acquired for a cash outlay.

Prepare the statement of cash flows for the company for the year ended 30 June 2020. Use the direct method.