The following comparative statements of financial position and statement of financial performance are for the business of Low Dollar Shop Pty Ltd.

Additional information 1. All sales and purchases of inventory are on credit.
2. Income tax is paid in one instalment during the year.
3. A dividend had been paid to shareholders.
4. Additional plant had been acquired for a cash outlay.
Required

(a) Prepare the statement of cash flows for the company for the year ended 30 June 2025. Use the direct method.

(b) Repeat requirement A using the indirect method.

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Assets Cash at bank LOW DOLLAR SHOP PTY LTD Comparative statements of financial position as at 30 June 2024 2025 $ 60 000 222 000 $ 90 000 156 000 Accounts receivable Inventory Prepaid expenses Plant and equipment Accumulated depreciation-plant and equipment Liabilities and equity Accounts payable Expenses payable Current tax liability Share capital Retained earnings Income Sales revenue Expenses Cost of sales Wages and salaries 180 000 132 000 1 800 000. (540 000) $ 1 854.000 288 000 66 000 150 000 90 000 450 000 $ 1 854 000 LOW DOLLAR SHOP PTY LTD Statement of financial performance for year ended 30 June 2025 Depreciation plant and equipment Other expenses Income tax expense Profit $ 1 224 000 264 000 108 000 1 944 000 (690 000) $ 1.872 000 180 000 120 000 132 000 1 200 000 540 000 $ 1 872.000 $ 2 400 000 480 000 150 000 234 000 132 000 2 220 000 $ 180 000