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*Use the Direct cash flow statement method The financial reports for Apple Supplies Limited are as follows: Comparative Balance Sheet for Apple Supplies Limited as

*Use the Direct cash flow statement method

The financial reports for Apple Supplies Limited are as follows:

Comparative Balance Sheet for Apple Supplies Limited as at 30 June 2019

2019

2018

ASSETS

Cash At Bank

52,000

23,000

Accounts Receivable

235,000

221,000

Inventory

73,000

55,000

Prepaid Rent

6,000

5,000

Motor Vehicles

75,000

102,000

Accum. Depn Motor Vehicles

(22,000)

(32,000)

419,000

374,000

LIABILITIES

Accounts Payable

91,000

82,000

Dividend Payable

13,000

15,000

Wages Payable

6,000

7,000

Tax Payable

15,000

13,000

Loan

80,000

52,000

205,000

169,000

EQUITY

Share Capital

97,000

135,000

Retained Earnings

117,000

70,000

214,000

205,000

Income Statement for Apple Supplies Limited for the year ended 30 June 2019

Sales

1,200,000

COGS

(500,000)

Gross Profit

700,000

Profit on sale of Motor Vehicle

2,000

Rent

51,000

Wages

530,000

Interest

8,000

Depreciation Motor Vehicles

13,000

Profit before Tax

100,000

Less Tax Expense

(30,000)

Profit

70,000

Additional information:

During the year, a motor vehicle which had cost $27,000 was sold for cash.

Required:

Prepare a Cash Flow Statement (by using the Direct Method) for the year ended 30 June 2019. Show all workings.

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