this is an accounting analysis

The Statements of Financial Position for Lexington Limited as at 30 June 2019 and 30 June [020 are provided below: Lexington Ltd Statement of Financial Position as at 30 June 2020 201 9 Assets $ $ Cash at bank 64,580 38,400 Accounts Receivable 82,800 35,000 Inventory 112,500 102,850 Prepaid Advertising 14,400 14,000 Machinery 310,000 282,500 Less: Accumulated Depreciation (50,000) (52,000) Total Assets $534,280 $420,750 Liabilities Accounts Payable 157,000 59,300 Dividends payable 15,000 - Wages payable 20,700 25,000 Loan 125,000 130,000 Total Liabilities $317,700 $214,300 Total Liabilities $317,700 $214,300 Shareholders' Equity Share Capital 126,000 101,000 Retained Earnings 90,580 105,450 Total Shareholders' Equity $216,580 $206,450 Total Liabilities and Shareholders' Equity $534,280 $420,750Lexington Ltd Statement of Financial Performance for the year ended 30 June 2020 5 Sales 272,000 Less: Cost of sales 145,460 Advertising Expense 15,000 Wages Expense 20,000 Other Operating Expenses 73,910 Loss on sale of Machine 7,500 Total Expenses 261,870 Prot $10,130 Additional Information: 1) An interim dividend was declared and paid. A nal dividend of $15,000 was declared. 2) New machinery costing $85,000 was purchased for cash during the year. 3) A machine having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the machine sold was $48,500 at the point of sale. 4) Other Operating Expenses include depreciation expense of $46,500. 5) Additional shares were issued for cash during the year. 6) All sales and purchases are on credit throughout the year ending 30 June 2020. 7) Accounts payable reects inventory purchases on credit from suppliers. REQUIRED: (a) Prepare a fully classified Statement of Cash Flows for Lexington Ltd for the year ended 30 June 2020 using the direct method. Show all workings. (b) Compare and contrast the information provided from a Statement of Cash Flows as compared to information contained in the Statement of Financial Position and Statement of Financial Performance. (word limit 150)