Comparative statements of financial position for Gold Ltd on 30 June 2017 and 2018 are presented below.

Examination of the company’s statement of profit or loss and other comprehensive income and general ledger accounts disclosed the following:

 1.  Profit (after tax) for the year ending 30 June 2018 was $80 000.

 2.  Depreciation expense was recorded during the year on buildings, $13 800, and on equipment, $22 900.

 3.  An extension was added to the building at a cost of $300 000 cash.

 4.  Long-term investments with a cost of $90 000 were sold for $125 000.

 5.  Vacant land next to the company’s factory was purchased for $129 000 with payment consisting of $39 000 cash and a loan payable for $90 000 due on 30 June 2021.

 6.  Debentures of $100 000 were issued for cash at nominal value.

 7.  30 000 shares were issued at $3.80 per share.

 8.  Equipment was purchased for cash.

 9.  Net sales for the period were $875 600; cost of sales amounted to $525 300; other expenses (other than depreciation, carrying amount of investments sold, interest, and bad debts written off, $3500) amounted to $149 400.

 10. Income tax paid during the year amounted to $73 700, and interest paid on liabilities amounted to $40 000.

	gold ltd Comparative Statements of Financial Position as at 30 June
			2018		2017
	CURRENT ASSETS Cash at bank Accounts receivable Inventory Prepaid expenses		$          — 127 200 275 000    22 800		$    74 600 111 300 221 200    23 000
			425 000		430 100
	NON-CURRENT ASSETS Buildings Accumulated depreciation – buildings Equipment Accumulated depreciation – equipment Land		639 000 (111 400) 361 200 (89 900)   168 000		339 000 (97 600) 331 200 (67 000)     39 000
			966 900		544 600
	Long-term investments		70 000		160 000
			$1 461 900		$1 134 700
	CURRENT LIABILITIES Bank overdraft Bills payable (trade) Accounts payable Accrued expenses Current tax liability		$     16 700 45 000 170 000 10 500    26 000		$         — 50 000 168 000 14 000     24 000
			268 200		256 000
	NON-CURRENT LIABILITIES Loan payable Debentures due 1/9/23		240 000    300 000		150 000    200 000
			540 000		350 000
			$  808 200		$  606 000
	EQUITY Share capital Retained earnings		$   502 100   151 600		$  388 100   140 600
			$  653 700		$  528 700

Required

A. Prepare a statement of cash flows for the year ended 30 June 2018 using the direct method, and assuming that bank overdraft is part of the entity’s cash management activities.

B. Prepare any notes required to be attached to the statement.