uestion 1: Cash Flow statement (42 marks) Easy Fit LTD Statements of Financial Position as at 30 June 2016 2017 Cash at bank $20,000 $257,495 Accounts Receivable $75,000 115,596 Inventory 72,000 147,803 Furniture and fittings $100,000 $61,385 Acc. depn furniture and fittings (30,000) 70,000 (20,000) 41,385 Buildings 330,000 430,000 Acc. depn buildings (80,000) 250,000 (110,000) $320,000 Total assets $487,000 $882,279 Accounts Payable $40,000 $110,111 Current tax liability 7,500 17,000 Loan due 2017 255,008 Share capital 400,000 420,000 Retained earnings 39,500 80,160 Total liabilities and equity $487,000 $882,279 Easy Fit LTD Statement of Profit or Loss for the year ended 30 June 2017 Income Sales revenue $480,000 Rent revenue 14,000 Discount received 1,630 $495,630 Expenses Cost of sales 340,000 Discount allowed 1,500 Bad debts 4,500 Salaries and wages 39,000 Loss on sale of equipment 6,119 Depreciation: buildings 30,000 furniture 10,000 431,119 Profit before income tax 64,511 Income tax expense (19,353) Profit $45,158 Additional information (a) New buildings were purchased for cash. (b) During the year, a dividend was paid to shareholders. (c) A loan was raised during the year to provide cash for working capital needs. (d) Furniture that had cost $38,615 and been depreciated by $20,000, was sold for cash of $12,496. (e) Bad debts written off was $4,500 Required 1. Prepare the statement of cash flows based on the direct method of presentation. (30 marks) (Show a negative amount preceded by a minus sign or in brackets.) 2. Prepare the T-account for the following accounts: (a) Furniture and Fittings (6 marks) (b)Accumulated depreciation Furniture and Fittings (6 marks)