The financial statements for the business of Autocare are shown below.

Required

(a) Prepare the statement of cash flows for Autocare for the year ended 30 June 2025, using the direct method.

(b) Comment on the cash flow position as shown in the entity’s statement of cash flows.

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Autocare Comparative statements of financial position as at 30 June Assets Cash at bank Accounts receivable Inventory Store equipment Accumulated depreciation-store equipment Land 2024 2025 $27 000 $42 000 51 000 144 000 168 000 90 000 108 000 (27 000) (45 000) 120 000 Buildings 60 000 180 000 180 000 Accumulated depreciation - buildings (9 000) (15 000) $540 000 $534 000 Liabilities and equity Accounts payable Bank overdraft $72 000 $78 000 30 000 438 000 456 000 W. Dyer, capital $540 000 $534 000