Wilson Ltd Comparative balance sheet as at 30 June 2018
Assets	2017		2018
Cash	$ 31 200		$ 55 200
Accounts receivable	79 200		57 600
Inventory	64 800		48 000
Prepaid expenses	31 200		48 000
Land	96 000		96 000
Property, plant and equipment	540 000		480 000
Less: Accumulated depreciation	(162 000)		(120 000)
Total assets	$680 400		$664 800
Liabilities and Shareholders' Equity
Accounts payable	$ 44 400		$ 21 600
Accrued expenses payable	18 000		22 800
Interest payable	3 600		2 400
Income taxes payable	4 800		7 200
Bonds payable	192 000		120 000
Share capital	252 000		295 200
Retained earnings	165 600		195 600
Total liabilities and shareholders' equity	$680 400		$664 800

Wilson Ltd Income Statement For the Year Ended 30 June 2018
Income
Sales revenue	$1 440 000
Gain on sale of PPE assets	6 000	$1 446 000
Less: Expenses
Cost of goods sold	1 200 000
Other expenses	162 000
Interest expense	12 000
Income tax expense	21 600	1 395 600
Net profit		$ 50 400

Additional information:

1. Property Plant and Equipment assets were sold at a sales price of $150 000.

2. Additional equipment was purchased at a cost of $144 000.

3. The other expense category includes depreciation.

4. All sales and purchases of inventory were on credit.

Prepare cash flow using Direct method.