A & L Mechanics is operated by Adrian and Len in partnership. Financial data for the partnership follow.

	a & L Mechanics Comparative Statements of Financial Position as at 30 June
			2016		2017
	ASSETS Cash Inventory Accounts receivable Prepaid insurance Long-term investments Motor vehicles Accumulated depreciation – motor vehicles		$  32 800 80 000 32 800 1 200 28 000 168 000  (52 000)		$  38 000 104 000 30 000 1 400 40 000 180 000  (72 000)
			$290 800		$321 400
	LIABILITIES AND EQUITY Accounts payable Accrued sundry expenses Long-term loan Adrian,         Capital       Retained earnings Len,  Capital       Retained earnings		$  40 000 700 70 000 40 000 14 000 80 000 46 100		$  28 000 550 50 000 60 000 60 700 80 000 42 150
			$290 800		$321 400

	A & L mechanics Income Statement for the year ended 30 June 2017
	INCOME Sales Gain from sale of motor vehicle	$900 000     2 000
		902 000
	EXPENSES Cost of sales General expenses (including depreciation)	640 000 136 000
		776 000
	PROFIT	$ 126 000

Additional information

All profits/losses are shared equally by Adrian and Len who also withdrew cash during the year. The vehicle that was sold had originally cost $20 000 (second-hand) and had been depreciated down to $4000.

Required

A. Prepare a statement of cash flows for the year ended 30 June 2017 using the direct method.

B. Comment on the statement of cash flows with respect to the operating, investing and financing activities of A & L Mechanics.