The simplified financial statements of Titanium Ltd appear below. TITANIUM LTD Statement of Financial Position as at 30 June 2020 2021 ASSETS Cash Accounts receivable Inventory Plant and equipment Accumulated depreciation - plant and equipment $ 37200 33 600 30 000 72 000 (26 400) $146 400 $ 15600 16 800 42 000 93 600 (28 800) $ 139 200 LIABILITIES AND EQUITY Accounts payable Current tax liability Loan payable Share capital Retained earnings 32 400 6 000 32 400 41 600 34000 $ 146 400 27 600 9600 37 200 41 600 23 200 $ 139 200 TITANIUM LTD Income Statement for the year ended 30 June 2021 $264 000 216 000 48 000 Sales Cost of sales GROSS PROFIT Selling expenses Administrative expenses Interest expense Profit before tax Income tax expense PROFIT $16 800 9600 1200 27 600 20 400 4800 $ 15600 Additional information 1. Dividends declared and paid were $26 400. 2. During the year equipment was sold for $10 200 cash. The equipment cost $21 600 and had a carrying amount of $10 200 at the time of sale. 3. Depreciation expense is included as a selling expense in the income statement. 4. All sales and purchases are on credit. Required: Prepare a statement of cash flows using the direct method