This question (Direct Method) and the next (Indirect Method) relate to calculations and presentation of cash flow statements for Jason Ltd for year ended June 30, 2020. The Income Statement of Jason Ltd. for the year ended June 30, 2020 is presented below: Sales 450,000 Less Cost of sales 300.000 150,000 Gross profit Add, Other income Gain on sale of 5.000 equipment 155,000 60.000 Less, Operating expenses Net operating Profit 95,000 The following additional information is available: o Inventory increased from $75,000 to $90,000 during the year. o Accounts receivable decreased from $130,000 to $120,000 during the year. o Accounts payable increased from $100,000 to $120,000 during the year. Prepaid insurance increased from $2,500 to $5,000 during the year. Equipment increased from $25,000 to $30,000 during the year. o Accumulated depreciation on equipment increased from $10,000 to $15,000 during the year, o Old equipment with an original cost of $10,000 and accumulated depreciation of $2,500 was sold during the year. o Operating expenses of $60,000 included depreciation expense of $7,500. . Retained earnings increased from $70,000 to $115,000 during the year. o All inventory sales and purchases are on credit. Required: Calculate the following items that would appear in the Statement of Cash Flows for the year ended June 30, 2020, using the DIRECT method. (9 marks) Instructions: - When entering amounts, use numbers only - no spaces, no dollar signs, no full stops, no dots, no decimal separators, no symbols, no special characters, e.g. enter $2,000 as 2000 - Cash inflows should be positive integers, whereas cash flows should be negative in brackets - eg. cash payment outflow of $2,000 enter as (2000) a) Cash receipts from customers: $ b) Cash paid to suppliers: $ (assuming credit purchases of inventory was $315,000) c) Cash paid for other expenses $ d) Cash paid for dividends: $ e) Cash proceeds from sale of the old equipment: $ f) Cash paid for the new equipment: $ Using the information from the previous question (Direct Method) and outlined again below, prepare the operating activities section of the Statement of Cash Flows for Jason Ltd. for the year ended June 30, 2020, using the INDIRECT method. (6 marks) The Income Statement of Jason Ltd. for the year ended June 30, 2020 is presented below: Sales 450,000 300.000 Less Cost of sales Gross profit 150,000 Add, Other income 5.000 Gain on sale of equipment 155,000 Less, Operating expenses 60,000 95,000 Net operating Profit The following additional information is available: Inventory increased from $75,000 to $90,000 during the year. o Accounts receivable decreased from $130,000 to $120,000 during the year. Accounts payable increased from $100,000 to $120,000 during the year. Prepaid insurance increased from $2,500 to $5,000 during the year. Equipment increased from $25,000 to $30,000 during the year. Accumulated depreciation on equipment increased from $10,000 to $15,000 during the year. o An old equipment with an original cost of $10,000 and accumulated depreciation of $2,500 was sold during the year. Operating expenses of $60,000 included depreciation expense of $7.500. Retained earnings increased from $70,000 to $115,000 during the year. All inventory sales and purchases are on credit. Required: Complete the operating activities section of the Statement of Cash Flows for the year ended June 30, 2020, using the INDIRECT method. (6 marks) (Note: Any items in the template provided that are not relevant you need to enter 'ignore' and also enter "O' in the amount column) Instructions Only use the following words (use the exact wording) to start each item listed in the statement. add less ignore from used by if a cell does not require an amount type in 0 (Do not leave a cell empty). When entering amounts, use numbers only - no spaces, no dollar signs, no full stops, no dots, no decimal separators, no symbols, no special characters, e.g. enter $2.000 as 2000 Enter additions as positive integers and deductions in brackets, e.g. less $50 would be (50) Statement of cash flows (extract) for year ended June 30, 2020 Operating activities $ net profit 95000 depreciation expense gain on sale of asset Adjustments in accrual changes in Enter additions as Statement of cash flows (extract) for year ended June 30, 2020 $ Operating activities 95000 net profit depreciation expense gain on sale of asset Adjustments in accrual changes in Balance Sheet items accounts receivable decrease accounts payable increase inventory increase prepaid insurance increase accumulated accumulated depreciation increase dividend payable increase Cash flow from operating activities