The comparative statements of financial position of Cresta Ltd as at 30 June 2019 and 2020, and the income statement and statement of changes in equity for the year ended 30 June 2020 are shown below.

Additional information 

1. Other expenses include $66 000 depreciation expense on machinery and insurance expense of $10 500.

2. All sales and purchases are on credit.

3. Lease income is earned as a result of renting part of the property that is in excess of the company’s needs.

Required

(a) Prepare the cash flows from operating activities only for Cresta Ltd for the year ended 30 June 2020, using the direct method. Ignore taxes.

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ASSETS Cash at bank Accounts receivable Inventory Prepaid insurance Property Machinery CRESTA LTD Comparative Statements of Financial Position as at 30 June Accumulated depreciation: machinery LIABILITIES AND EQUITY Accounts payable Interest payable Other accrued expenses Mortgage payable Share capital Retained earnings 2019 2020 $ 19500 112 500 198 000 10 500 134 400 900 000 (201 000) $1173900 $ 69.000 100 500 246000 7 500 120 000 1 080 000 (243 000) $1380 000 66 000 10 200 13500 360 000 300 000 424 200 $1173 900 75 000 9000 21000 435 000 510 000 330 000 $1380000