Comparative information as at 30 June 2017 and 30 June 2018 for Pretentious Ltd is as follows:

	pretentious LTD Comparative Statements of Financial Position as at 30 June
			2017		2018
	ASSETS Cash at bank Accounts receivable Inventory Land Buildings Accumulated depreciation – buildings Plant and equipment Accumulated depreciation – plant and equipment		$  124 000 152 000 248 000 125 000 275 000 (170 000) 80 000  (10 000)		$   86 000 169 000 227 000 50 000 530 000 (200 000) 80 000   (20 000)
			$ 824 000		$ 922 000
	LIABILITIES AND EQUITY Accounts payable Interest payable Other expenses payable Mortgage loan payable Share capital Retained earnings		$ 121 000 1 500 17 500 90 000 250 000 344 000		$ 134 000 500 6 000 132 500 250 000 399 000
			$ 824 000		$ 922 000

Additional information

(a) Gross profit for the year ended 30 June 2018 was $321 000, and consisted of:

        Sales              $887 000

        Cost of sales    566 000

(b) Purchases of inventory for the year were $545 000.

(c) All purchases and sales of inventories were on credit.

(d) Profit for the year ended 30 June 2018 was $62 500, after deducting expenses of $258 500 from the gross profit figure.

(e) Expenses of $258 500 include depreciation on buildings, and on plant and equipment, a loss on sale of land, and $10 000 in interest expense.

(f)  During the year ended 30 June 2018, cash dividends were paid.

(g) Building extensions were paid for during the year, and a block of land, costing $75 000, was sold for $62 500 cash.

(h) No plant was purchased or sold during the year.

Required

A. Prepare the statement of cash flows for Pretentious Ltd for the year ended 30 June 2018 using the direct method.

B. Show how cash flows from operating activities in the statement would be presented under the indirect method.