The following comparative statements of financial position and income statement are for the business of Bargains Galore 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 2020. Use the direct method.

(b) Repeat requirement

(a) using the indirect method.

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BARGAINS GALORE PTY LTD Comparative Statements of Financial Position as at 30 June ASSETS Cash at bank 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 2019 2020 $ 20000 74 000 60 000 44 000 600 000 (180 000) $ 30000 52 000 88 000 36 000 648 000 (230 000) $ 624000 60 000 40 000 $ 618000 96 000 22 000 50 000 44 000 300 000 300 000 150 000 $ 618000 $ 624000 180 000