These are the financial statements of Metro Meats Ltd:

The following additional data were provided:
1. The entity paid an interim dividend of $2 000 and declared a final dividend.

2. During the year equipment was sold for $8 500 cash. This equipment cost $18 000 originally and had a carrying amount of $8 500 at the time of sale.

3. All depreciation expense is in the selling expense category.

4. All operating expenses except for depreciation were paid in cash.

Required:

Prepare a statement of cash flows using the direct method.

Assets Cash METRO MEATS LTD Statement of Financial Position as at 31 December 2015 2015 Accounts receivable Inventory Property, plant and equipment Accumulated depreciation Total Liabilities and equity Accounts payable Dividends payable Income tax payable Debentures payable Share capital Retained earnings Total $29 000 28 000 25 000 60 000 (20 000) $122 000 Sales Cost of sales Gross profit Selling expenses Administrative expenses Interest expense Profit before income tax Income tax expense Profit $ 26 000 3 000 5 000 27 000 18 000 43 000 $122 000 METRO MEATS LTD Statement of Profit or Loss for the year ended 31 December 2015 2014 $15 000 14 000 35 000 78 000 (24 000) $118 000 $ 25 000 8. 000 33 000 14 000 38 000 $118 000 $250 000 210 000 40 000 18 000 6 000 2 000 14 000 4 000 $ 10 000