Answer Happy

Below is the information relating to Chan Trading Company for the year ended 31 December 2021. Chan Trading Company Comparative Statement of Financial Position as at 30 June Assets 2020 30,000 $ 2021 35,000 Cash $ Accounts receivable 55,000 75,000 Inventory 120,000 124,000 Plant and equipment 300,000 400,000 Accumulated depreciation 80,000 100,000 Total Assets 425,000 534,000 Liabilities and Equity Accounts payable 85,000 90,000 Income tax payable 50,000 65,000 10,000 17,000 Interest payable Loan 80,000 110,000 Capital 200,000 252,000 Total Liabilities and Equity 425,000 $ 534,000 Sales $ 925,000 Less Cost of Goods Sold 655.000 Gross Profit 270,000 Less Expenses 88,000 45,000 8,000 141,000 Selling expense Admin expense Interest expense Net profit before tax Income tax expense Net profit after tax 129,000 35,000 $ 94.000 Additional information: 1 New equipment was purchased for cash during the year. It is included in the value of plant and equipment. 2 During the year equipment costing $55,000 was sold for $25,000 and had a carrying amount of $25,000 at the time of sale. 3 All depreciation expense has been included in the selling expense category. 4 Owner withdrew cash amounted to $42,000 during the year. Required: Prepare a statement of cash flows for Chan Trading Company for the year ended 30 June 2021 using the direct method. $ Chan Trading Company Statement of Profit and Loss for the year ended 30 June 2021 $