wish you solve it well, thank you team

18.9 Statement of cash flows for sole trader and analysis LO5 The financial statements for the business of Trinh's Nail Supplies for the past two years are pre- sented below. Additional information 1. All purchases and sales of inventories are on credit. All purchases of office supplies are for cash. 2. The bank overdraft is considered to be part of the entity's cash management function. 3. During the year ended 30 June 2020, the owner, Trinh, withdrew $12 800 in cash for personal use. 4. The entity sold some fixtures for $1200 cash during the current year. These fixtures initially cost $4200 and had been written down to a carrying amount at the date of sale of $2000. 5. Depreciation of fixtures has been included in other expenses' for the year ended 30 June 2020. All remaining other expenses were paid in cash. TRINH'S NAIL SUPPLIES Comparative Income Statements for the year ended 30 June 2020 $ 400 000 $500 000 Cost of sales 350 000 458000 GROSS PROFIT 50 000 42000 Interest income 1000 2000 Loes on sale of fixtures 800 51 000 43 200 Office supplies used 10000 11000 Other expenses 29000 39000 PROFIT 2019 Sales 29000 40000 $ 12000 S 3200 TRINH'S NAIL SUPPLIES Comparative Statements of Financial Position as at 30 June 2019 2020 ASSETS Cash at bank Accounts receivable Inventory Office supplies Freehold property Fixtures Accumulated depreciation - fixtures Investments $ 4400 42 000 80 000 2 000 60 000 40 000 (16000) 6000 $218 400 $ 60000 40000 5000 80000 46 000 (20200) 16000 $226 800 LIABILITIES AND EQUITY Bank overdraft Accounts payable Trinh, Capital 26000 192 400 $218 400 4000 40 000 192 800 $226 800 Required (a) Prepare the statement of cash flows for Trinh's Nail Supplies for the year ended 30 June 2020, using the direct method. (b) Comment on the cash flow position of the entity as shown in the statement of cash flows