The comparative statements of financial position of Hutt Electrical as at 30 June 2019 and 2020 and the income statement for the year ended 30 June 2020 are shown below.

Additional information

1. Other expenses include $52 500 depreciation expense.

2. All sales and purchases of inventory are on credit.

Required

(a) Prepare a statement of cash flows from operating activities only for Hutt Electrical for the year ended 30 June 2020 using the direct method.

(b) Repeat requirement (a) using the indirect method.

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ASSETS Cash at bank Accounts receivable Inventory Prepaid insurance Property Plant and equipment Accum. depreciation TOTAL ASSETS HUTT ELECTRICAL Comparative Statements of Financial Position as at 30 June 2019 2020 $ 22500 82500 165 000 7500 190 500 757 500 (102 000) $ 69.000 70 500 216000 1500 172 500 1 072 500 (154 500) $1 447 500 - plant and equipment $1 123 500